Tesoro Corp Earnings Cheat Sheet: Increased Profit Helps Beat the Street

S&P 500 (NYSE:SPY) component Tesoro Corporation (NYSE:TSO) reported net income above Wall Street’s expectations for the third quarter. Tesoro is an independent petroleum refiner and marketer in the United States that refines crude oil, 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 Third Quarter

Results: Net income for the oil and gas refining and marketing company rose to $345 million ($2.39 per share) vs. $56 million (39 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 52.3% to $8.1 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TSO beat the mean analyst estimate of $1.70 per share. Analysts were expecting revenue of $8.07 billion.

Quoting Management: “We are pleased with the exceptional third quarter results. This marks the highest quarterly earnings since the second quarter of 2007, when the Tesoro Index was $24 per barrel (/bbl), more than $10/bbl higher than this quarter,” 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 35.8%, with the biggest boost coming in the second quarter when revenue rose 54.8% from the year earlier quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 31 cents in the second quarter and by 13 cents in the first quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 81 cents per share, up from 39 cents ninety days ago. The average estimate for the fiscal year is $5 per share, a rise from $3.41 ninety days ago.

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).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)