Alon USA Energy Earnings: Here’s Why Investors are Excited Now

Alon USA Energy, Inc. (NYSE:ALJ) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0%.

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Alon USA Energy, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 473.33% to $0.86 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Decreased 7.86% to $1.65 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alon USA Energy, Inc. reported adjusted EPS income of $0.86 per share. By that measure, the company beat the mean analyst estimate of $0.51. It beat the average revenue estimate of $1.53 billion.

Quoting Management: Paul Eisman, CEO and President, commented, “We continue to profit from the strategic operational decisions that improve our crude slate at our refineries as evidenced by our adjusted EBITDA of $157 million for the quarter and adjusted EBITDA for the last twelve months of $524 million. Also, we had net income of $74 million before non-controlling interest for the quarter. We achieved these results despite reduced refinery throughput rates resulting from maintenance at both Big Spring and Krotz Springs during the quarter. During the first quarter, we made additional progress towards our goal of strengthening our balance sheet by reducing net debt an additional $137 million to $334 million. At the end of the first quarter our net debt to total capitalization was 32% and net debt to adjusted EBITDA for the last twelve months was 0.6:1 compared to 70% and 3.7:1 for the same periods last year.

Key Stats (on next page)…

Revenue decreased 15.53% from $1.95 billion in the previous quarter. EPS increased 48.28% from $0.58 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.58 to a profit $0.63. For the current year, the average estimate has moved up from a profit of $1.59 to a profit of $1.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]