Tesoro Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Tesoro (NYSE:TSO) will unveil its latest earnings on Wednesday, August 1, 2012. 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.

Tesoro Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.22 per share, a rise of 34.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.44. Between one and three months ago, the average estimate moved up. It has risen from $1.79 during the last month. For the year, analysts are projecting profit of $4.83 per share, a rise of 22.6% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 39 cents per share against a mean estimate of profit of 28 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 23 cents.

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A Look Back: In the first quarter, profit fell 47.7% to $56 million (39 cents a share) from $107 million (74 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 19.8% to $7.82 billion from $6.53 billion.

Stock Price Performance: Between May 30, 2012 and July 26, 2012, the stock price had risen $3.90 (16.8%), from $23.21 to $27.11. The stock price saw one of its best stretches over the last year between November 25, 2011 and December 5, 2011, when shares rose for seven straight days, increasing 11% (+$2.46) over that span. It saw one of its worst periods between March 26, 2012 and April 11, 2012 when shares fell for 12 straight days, dropping 16.6% (-$4.75) over that span.

Wall St. Revenue Expectations: On average, analysts predict $6.9 billion in revenue this quarter, a decline of 13.3% from the year-ago quarter. Analysts are forecasting total revenue of $28.51 billion for the year, a decline of 5.9% from last year’s revenue of $30.3 billion.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 41.7% over the last four quarters.

Analyst Ratings: With six analysts rating the stock as a buy, none rating it as a sell and six rating it as a hold, there are indications of a bullish outlook. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.26 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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