How the Wheels Came Off HollyFrontier's Bus

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HollyFrontier (NYS: HFC) reported earnings on Feb. 28. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.

Margins grew across the board.

Revenue details
HollyFrontier booked revenue of $4.97 billion. The six analysts polled by S&P Capital IQ hoped for sales of $4.29 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $2.21 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.06. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.34 per share. GAAP EPS of $1.06 for Q4 were much higher than the prior-year quarter's $0.14 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 9.4%, 500 basis points better than the prior-year quarter. Operating margin was 7.5%, 540 basis points better than the prior-year quarter. Net margin was 4.5%, 380 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.03 billion. On the bottom line, the average EPS estimate is $1.08.

Next year's average estimate for revenue is $17.55 billion. The average EPS estimate is $4.52.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 675 members out of 708 rating the stock outperform, and 33 members rating it underperform. Among 231 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 226 give HollyFrontier a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HollyFrontier is outperform, with an average price target of $36.47.

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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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