Tesoro Beats Expectations but Takes a Step Back Anyway
Tesoro (NYS: TSO) reported earnings May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Tesoro crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Tesoro reported revenue of $7.82 billion. The four analysts polled by S&P Capital IQ expected revenue of $6.32 billion on the same basis. GAAP reported sales were 22% 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 came in at $0.42. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. 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.
For the quarter, gross margin was 3.9%, 260 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.
Next quarter's average estimate for revenue is $8.21 billion. On the bottom line, the average EPS estimate is $1.57.
Next year's average estimate for revenue is $28.06 billion. The average EPS estimate is $3.90.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 903 members out of 965 rating the stock outperform, and 62 members rating it underperform. Among 264 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 241 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 hold, with an average price target of $30.42.
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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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