Tesoro Earnings: Here’s Why Shares are Falling Now

Tesoro Corporation (NYSE:TSO) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1%.

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Tesoro Corporation Earnings Cheat Sheet

Results: Net income increased to $27 million ($1.34 per diluted share) in the quarter versus a net loss of $124 million in the year-earlier quarter.

Revenue: Decreased 97.54% to $190 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tesoro Corporation reported adjusted net income of $1.34 per share. By that measure, the company missed the mean analyst estimate of $1.37. It missed the average revenue estimate of $6.95 billion.

Quoting Management: “Our solid operating performance allowed us to capture strong crack spreads and report record fourth quarter adjusted earnings per share,” said Greg Goff, President and CEO. “For the full year 2012, we continued to demonstrate our ability to drive fundamental improvements in the business while reporting the highest adjusted earnings in the Company`s history.”

Key Stats (on next page)…

Revenue decreased 97.84% from $8.78 billion in the previous quarter. Net income decreased 90.11% from $273 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.95 to a profit $0.93. For the current year, the average estimate has moved down from a profit of $6.73 to a profit of $6.7 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)