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Murphy USA Q3 adjusted EBITDA beats analyst estimates on higher fuel contribution 

By Reuters News


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


Reuters Recommended Reads

  • Oct 28 - Phillips 66 posts record quarterly profit on refining strength

  • Oct 28 - HF Sinclair posts record quarterly profit on refining boom, appoints new CEO

  • Oct 26 - US consumers paying the most for fuel price spikes from Iran war, study says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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