Tesoro Goes Red

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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