Murphy USA Q3 adjusted EBITDA beats analyst estimates on higher fuel contribution
Overview
U.S. fuel retailer's Q3 revenue and EPS rose yr/yr, net income up to $176 mln
Q3 adjusted EBITDA beat analyst expectations
Merchandise contribution fell 2.8% due to lower unit margins and no repeat nicotine promotion
Company raised quarterly dividend to $0.72 per share, up 11% from prior quarter
Outlook
Company expects continued market volatility to impact fuel prices and supply dynamics
Murphy USA remains focused on disciplined execution and cost control amid ongoing volatility
Result Drivers
FUEL CONTRIBUTION - Higher total fuel contribution, including stronger fuel supply results and increased retail fuel volumes, drove Q3 results
FUEL SUPPLY VOLATILITY - Market-driven pricing and inventory timing boosted fuel supply contribution including RINs
MERCHANDISE MARGINS - Lower merchandise unit margins and absence of prior-year nicotine promotion weighed on merchandise contribution
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $6.89 bln | ||
Q3 EPS | $9.59 | ||
Q3 Net Income | $176 mln | ||
Q3 Adjusted EBITDA | Beat | $336.6 mln | $312.7 mln (10 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"
Wall Street's median 12-month price target for Murphy USA Inc. is $625.44, about 17.8% above its October 27 closing price of $531.11
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)