Tesoro Earnings: Here’s Why the Stock is Rising 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 up 0.62%.

Tesoro Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 45.64% to $1.56 in the quarter versus EPS of $2.87 in the year-earlier quarter.

Revenue: Rose 9.77% to $8.9 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tesoro Corporation reported adjusted EPS income of $1.56 per share. By that measure, the company beat the mean analyst estimate of $1.46. It beat the average revenue estimate of $7.58 billion.

Quoting Management: “Our solid second quarter results reflect a strong operating performance and continued execution of our strategic plan,” said Greg Goff, President and CEO. “Despite significant turnaround activity, we reported refinery utilization of 93%; closed the transformational acquisition of BP`s Southern California refining, marketing and logistics business; announced the sale of our Hawaii business; made significant progress on our high-return capital program; announced a strategically important branding agreement with Exxon Mobil and developed the next phase of our West Coast crude oil supply strategy with the formation of the Tesoro-Savage joint venture.”

Key Stats (on next page)…

Revenue increased 9.09% from $8.16 billion in the previous quarter. EPS increased 113.7% from $0.73 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 $2.14 to a profit $1.88. For the current year, the average estimate has moved down from a profit of $5.71 to a profit of $5.09 over the last ninety days.

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