Delek US Holdings Blows Past Estimates

Seth Jayson, The Motley Fool
Updated

Delek US Holdings (NYS: DK) reported earnings May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Delek US Holdings crushed expectations on revenues and crushed expectations on earnings per share.

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


Gross margins shrank, operating margins grew, net margins expanded.

Revenue details
Delek US Holdings booked revenue of $2.17 billion. The two analysts polled by S&P Capital IQ expected sales of $1.18 billion on the same basis. GAAP reported sales were 90% higher than the prior-year quarter's $1.14 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 $0.79. The five earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. GAAP EPS of $0.79 for Q1 were 155% higher than the prior-year quarter's $0.31 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 6.0%, 530 basis points worse than the prior-year quarter. Operating margin was 3.9%, 80 basis points better than the prior-year quarter. Net margin was 2.1%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $6.53 billion. The average EPS estimate is $2.26.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 297 members rating the stock outperform and 23 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give Delek US Holdings 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 Delek US Holdings is outperform, with an average price target of $17.40.

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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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