Tesoro Goes Red

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Tesoro (NYS: TSO) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tesoro beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Tesoro chalked up revenue of $7.71 billion. The four analysts polled by S&P Capital IQ anticipated a top line of $6.78 billion. Sales were 42% higher than the prior-year quarter's $5.51 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.89. The 15 earnings estimates compiled by S&P Capital IQ forecast -$0.67 per share. GAAP EPS were -$0.89 for Q4 versus $0.02 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 0.4%, 360 basis points worse than the prior-year quarter. Operating margin was -1.9%, 250 basis points worse than the prior-year quarter. Net margin was -1.6%, 170 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $7.69 billion. On the bottom line, the average EPS estimate is $0.47.

Next year's average estimate for revenue is $27.84 billion. The average EPS estimate is $3.75.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 913 members out of 980 rating the stock outperform, and 67 members rating it underperform. Among 299 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 277 give Tesoro a green thumbs-up, and 22 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesoro is hold, with an average price target of $29.53.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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