Tesoro Corp Earnings Cheat Sheet: Exceeds Forecasts with Boost of Profit Rise

S&P 500 (NYSE:SPY) component Tesoro Corporation (NYSE:TSO) reported net income above Wall Street’s expectations for the second quarter. Tesoro Corporation is an independent petroleum refiner and marketer in the United States that: refines crude oil and sells refined products in bulk and wholesale markets and sells motor fuels in the retail market.

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Tesoro Earnings Cheat Sheet for the Second Quarter

Results: Net income for Tesoro Corporation rose to $222 million ($1.52 per share) vs. $67 million (47 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Revenue: Rose 54.8% to $7.96 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TSO reported adjusted net income of $1.65 per share. By that measure, the company beat the mean estimate of $1.32 per share. It beat the average revenue estimate of $7.2 billion.

Quoting Management: “We are pleased with the second quarter and year-to-date results. We continue to increase refinery utilization rates and deliver gross margin improvements in excess of the market. We are making progress on our high-return capital program and have initiated additional projects that leverage regional feedstock advantages throughout our system, including the Mandan and Anacortes projects. Additionally, we have made substantial progress on our de-levering strategy by repurchasing $244 million of debt,” said Greg Goff, President and CEO.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 30%, with the biggest boost coming in the most recent quarter when revenue rose 54.8% from the year earlier quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 74 cents versus a mean estimate of net income of 61 cents per share.

Competitors to Watch: Valero Energy Corporation (NYSE:VLO), Alon USA Energy, Inc. (NYSE:ALJ), Western Refining, Inc. (NYSE:WNR), Sunoco, Inc. (NYSE:SUN), Frontier Oil Corporation (NYSE:FTO), Holly Corporation (NYSE:HOC), Delek US Holdings, Inc. (NYSE:DK), Calumet Specialty Products Partners, L.P (NASDAQ:CLMT), CVR Energy, Inc. (NYSE:CVI), and Chevron Corporation (NYSE:CVX).

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(Source: Xignite Financials)