Tesoro Earnings: Here’s Why the Stock is Falling Now

Tesoro Corporation (NYSE:TSO) 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 4.74%.

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Tesoro Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 87.18% to $0.73 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 4.3% to $8.16 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tesoro Corporation reported adjusted EPS income of $0.73 per share. By that measure, the company beat the mean analyst estimate of $0.72. It beat the average revenue estimate of $6.58 billion.

Quoting Management: “We are pleased with our first quarter results, which reflect a solid operating performance and continued execution of our strategic plan,” said Greg Goff, President and CEO. “We completed a major portion of our planned turnaround activity for 2013; developed the next phase of our West Coast crude oil strategy with the formation of the Tesoro-Savage joint venture; began the process to cease crude oil refining operations in Hawaii; and continued returning cash to shareholders through share repurchases and dividend payments.”

Key Stats (on next page)…

Revenue decreased 1.41% from $8.27 billion in the previous quarter. EPS decreased 45.52% from $1.34 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 $1.95 to a profit $1.8. For the current year, the average estimate has moved down from a profit of $5.87 to a profit of $5.83 over the last ninety days.

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