What to Expect From Tesoro

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Tesoro (NYS: TSO) is expected to report Q2 earnings tomorrow. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Tesoro's revenues will wane 0.0% and EPS will increase 35.8%.

The average estimate for revenue is $7.96 billion. On the bottom line, the average EPS estimate is $2.24.


Revenue details
Last quarter, Tesoro chalked up revenue of $7.82 billion. GAAP reported sales were 20% higher than the prior-year quarter's $6.44 billion.

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

EPS details
Last quarter, EPS came in at $0.39. GAAP EPS of $0.39 for Q1 were 47% lower than the prior-year quarter's $0.74 per share.

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

Recent performance
For the preceding quarter, gross margin was 4.0%, 250 basis points worse than the prior-year quarter. Operating margin was 1.8%, 160 basis points worse than the prior-year quarter. Net margin was 0.7%, 100 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $28.60 billion. The average EPS estimate is $4.92.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 908 members rating the stock outperform and 64 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 231 give Tesoro a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesoro is outperform, with an average price target of $30.42.

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The article What to Expect From Tesoro originally appeared on Fool.com.

Seth Jaysonhad 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. The Motley Fool has no positions in the stocks mentioned above. 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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