Alon USA Energy Increases Sales but Misses Estimates on Earnings

Alon USA Energy (NYS: ALJ) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alon USA Energy met expectations on revenue and missed expectations on earnings per share.

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

Gross margin dropped, operating margin were steady, and net margin improved.

Revenue details
Alon USA Energy reported revenue of $1.88 billion. The two analysts polled by S&P Capital IQ wanted to see a top line of $1.89 billion on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $1.35 billion.

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

EPS details
Non-GAAP EPS came in at -$0.78. The five earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share on the same basis. GAAP EPS was -$0.23 for Q4, compared to -$0.47 per share for the prior-year quarter.

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 2.9%, 50 basis points worse than the prior-year quarter. Operating margin was -0.8%, about the same as the prior-year quarter. Net margin was -0.7%, 120 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.90 billion. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $7.56 billion. The average EPS estimate is $1.50.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 374 members rating the stock outperform and 18 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Alon USA Energy 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 Alon USA Energy is hold, with an average price target of $10.25.

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