Tesoro Corporation Earnings: Five Quarters of Revenue Growth

S&P 500 (NYSE:SPY) component Tesoro Corporation (NYSE:TSO) swung to a profit in the first quarter on lower costs. 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 First Quarter

Results: Swung to a profit of $107 billion (74 cents/diluted share) in the quarter. The oil and gas refining and marketing company had a net loss of $155 million or a loss of $1.11 per share in the year earlier quarter.

Revenue: Rose 41.7% to $6.53 billion YoY.

Actual vs. Wall St. Expectations: TSO beat the mean analyst estimate of 66 cents/share. Estimates ranged from 11 cents per share to 78 cents per share.

Quoting Management: “We had an excellent first quarter. Significantly higher refinery utilization rates and good progress on our EBITDA improvement initiatives combined with strong product crack spreads and price advantaged crude oil helped deliver outstanding earnings and cash flow for the first quarter,” said Greg Goff, President and CEO of Tesoro.

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 27.1%, with the biggest boost coming in the most recent quarter when revenue rose 41.7% from the year earlier quarter.

Gross margins grew 100.2 percentage points to 99.9%. The growth appeared to be driven by falling costs, as the figure fell 99.9% from the year earlier while revenue rose 41.7%.

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)

Stock Performance: Shares of TSO are down over 4%.

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