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Murphy USA Q4 Earnings Beat on Higher Merchandise Sales
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Motor fuel retailer Murphy USA Inc. (MUSA - Free Report) announced fourth-quarter 2024 earnings per share of $6.96, which beat the Zacks Consensus Estimate of $6.43. The outperformance was primarily due to relatively strong merchandise sales.
However, the company’s bottom line fell from the year-ago adjusted profit of $7 due to tepid petroleum product sales.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Murphy USA’s operating revenues of $4.7 billion fell 7.1% year over year and missed the consensus mark by $169 million.
Revenues from petroleum product sales came in at $3.6 billion, well below our estimate of $4.1 billion and down 9.6% from the fourth quarter of 2023. On the other hand, merchandise sales, at $1.1 billion, rose 3.2% year over year.
MUSA’s total fuel contribution fell 1% year over year to $389.1 million on lower retail contribution and margin contraction. Total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 32.5 cents per gallon, unchanged from the fourth quarter of 2023.
Retail fuel contribution decreased 8% year over year to $345.8 million as margins narrowed to 28.9 cents per gallon from 31.1 cents in the corresponding period of 2023. Retail gallons declined 1% from the year-ago period to 1,196.8 million in the quarter under review and missed our estimate of 1,210 million. Volumes on an SSS basis (or fuel gallons per store) deteriorated 1.8% from the fourth quarter of 2023 to 233.6 thousand.
Contribution from Merchandise increased 5.6% to $208.8 million on higher sales and a rise in unit margins from 19.4% a year ago to 19.9% in the fourth quarter of 2024. On an SSS basis, total merchandise contribution increased 2.4% year over year, primarily on the back of 4.7% higher nicotine margins. Meanwhile, merchandise sales increased 1.5% on an SSS basis, again mostly due to an increase in nicotine sales.
The Zacks Rank #2 (Buy) company’s monthly fuel gallons fell 2.4% from the prior-year period, though merchandise sales increased 2% on an average per store monthly basis.
As of Dec. 31, Murphy USA — which opened 22 new retail locations in the quarter and closed five outlets to take its store count to 1,757 — had cash and cash equivalents of $47 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 68.6%.
During the quarter, MUSA bought back shares worth $126.2 million.
Some Key Refining Earnings
While we have discussed MUSA’s fourth-quarter results in detail, let’s see how some other refining companies have fared this earnings season.
Valero Energy (VLO - Free Report) reported fourth-quarter 2024 adjusted earnings of 64 cents per share, which comprehensively beat the Zacks Consensus Estimate of 13 cents due to an increase in renewable diesel margins and lower total cost of sales. However, adjusted operating income in the Refining segment totaled $437 million, plunging from $1.6 billion in the year-ago quarter. The figure also missed our estimate of $1.3 billion.
Valero’s total cost of sales decreased to $30.1 billion from the year-ago figure of $33.5 billion. The figure is also below our estimate of $30.6 billion, primarily due to lower costs of materials and others. The fourth-quarter capital investment totaled $547 million, of which $452 million was allotted for sustaining the business.
Another refining giant, Phillips 66 (PSX - Free Report) , reported a fourth-quarter 2024 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents. However, the bottom line compared unfavorably with the year-ago quarter’s earnings of $3.09. The better-than-expected quarterly results can be primarily attributed to higher renewable fuel margins and a reduction in total costs and expenses. However, the positives were partially offset by lower contributions from the Refining segment due to a decline in realized margins.
Phillips 66 generated $1.2 billion of net cash from operations for the reported quarter, significantly lower than $2.2 billion a year ago. The company’s capital expenditure and investments totaled $506 million. It paid out dividends of $472 million in the fourth quarter. As of Dec. 31, 2024, cash and cash equivalents.
Finally, we have Marathon Petroleum’s (MPC - Free Report) fourth-quarter adjusted earnings per share of 77 cents, which comfortably beat the Zacks Consensus Estimate of 6 cents. The outperformance primarily reflects the stronger-than-expected performance of its Refining & Marketing segment. The adjusted EBITDA of the segment totaled $559 million, surpassing the consensus mark, calling for a profit of $188 million on the back of lower costs and higher throughput.
Marathon Petroleum’s total refined product sales volumes were 3,747 thousand barrels per day (mbpd), up from 3,583 mbpd in the year-ago quarter. Throughput rose from 2,922 mbpd in the year-ago quarter to 2,997 mbpd and outperformed the Zacks Consensus Estimate of 2,915 mbpd. MPC’s operating costs per barrel decreased from $5.55 in the year-ago quarter to $5.26.
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Murphy USA Q4 Earnings Beat on Higher Merchandise Sales
Motor fuel retailer Murphy USA Inc. (MUSA - Free Report) announced fourth-quarter 2024 earnings per share of $6.96, which beat the Zacks Consensus Estimate of $6.43. The outperformance was primarily due to relatively strong merchandise sales.
However, the company’s bottom line fell from the year-ago adjusted profit of $7 due to tepid petroleum product sales.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Murphy USA’s operating revenues of $4.7 billion fell 7.1% year over year and missed the consensus mark by $169 million.
Revenues from petroleum product sales came in at $3.6 billion, well below our estimate of $4.1 billion and down 9.6% from the fourth quarter of 2023. On the other hand, merchandise sales, at $1.1 billion, rose 3.2% year over year.
Murphy USA Inc. Price, Consensus and EPS Surprise
Murphy USA Inc. price-consensus-eps-surprise-chart | Murphy USA Inc. Quote
Key Takeaways
MUSA’s total fuel contribution fell 1% year over year to $389.1 million on lower retail contribution and margin contraction. Total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 32.5 cents per gallon, unchanged from the fourth quarter of 2023.
Retail fuel contribution decreased 8% year over year to $345.8 million as margins narrowed to 28.9 cents per gallon from 31.1 cents in the corresponding period of 2023. Retail gallons declined 1% from the year-ago period to 1,196.8 million in the quarter under review and missed our estimate of 1,210 million. Volumes on an SSS basis (or fuel gallons per store) deteriorated 1.8% from the fourth quarter of 2023 to 233.6 thousand.
Contribution from Merchandise increased 5.6% to $208.8 million on higher sales and a rise in unit margins from 19.4% a year ago to 19.9% in the fourth quarter of 2024. On an SSS basis, total merchandise contribution increased 2.4% year over year, primarily on the back of 4.7% higher nicotine margins. Meanwhile, merchandise sales increased 1.5% on an SSS basis, again mostly due to an increase in nicotine sales.
The Zacks Rank #2 (Buy) company’s monthly fuel gallons fell 2.4% from the prior-year period, though merchandise sales increased 2% on an average per store monthly basis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Balance Sheet
As of Dec. 31, Murphy USA — which opened 22 new retail locations in the quarter and closed five outlets to take its store count to 1,757 — had cash and cash equivalents of $47 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 68.6%.
During the quarter, MUSA bought back shares worth $126.2 million.
Some Key Refining Earnings
While we have discussed MUSA’s fourth-quarter results in detail, let’s see how some other refining companies have fared this earnings season.
Valero Energy (VLO - Free Report) reported fourth-quarter 2024 adjusted earnings of 64 cents per share, which comprehensively beat the Zacks Consensus Estimate of 13 cents due to an increase in renewable diesel margins and lower total cost of sales. However, adjusted operating income in the Refining segment totaled $437 million, plunging from $1.6 billion in the year-ago quarter. The figure also missed our estimate of $1.3 billion.
Valero’s total cost of sales decreased to $30.1 billion from the year-ago figure of $33.5 billion. The figure is also below our estimate of $30.6 billion, primarily due to lower costs of materials and others. The fourth-quarter capital investment totaled $547 million, of which $452 million was allotted for sustaining the business.
Another refining giant, Phillips 66 (PSX - Free Report) , reported a fourth-quarter 2024 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents. However, the bottom line compared unfavorably with the year-ago quarter’s earnings of $3.09. The better-than-expected quarterly results can be primarily attributed to higher renewable fuel margins and a reduction in total costs and expenses. However, the positives were partially offset by lower contributions from the Refining segment due to a decline in realized margins.
Phillips 66 generated $1.2 billion of net cash from operations for the reported quarter, significantly lower than $2.2 billion a year ago. The company’s capital expenditure and investments totaled $506 million. It paid out dividends of $472 million in the fourth quarter. As of Dec. 31, 2024, cash and cash equivalents.
Finally, we have Marathon Petroleum’s (MPC - Free Report) fourth-quarter adjusted earnings per share of 77 cents, which comfortably beat the Zacks Consensus Estimate of 6 cents. The outperformance primarily reflects the stronger-than-expected performance of its Refining & Marketing segment. The adjusted EBITDA of the segment totaled $559 million, surpassing the consensus mark, calling for a profit of $188 million on the back of lower costs and higher throughput.
Marathon Petroleum’s total refined product sales volumes were 3,747 thousand barrels per day (mbpd), up from 3,583 mbpd in the year-ago quarter. Throughput rose from 2,922 mbpd in the year-ago quarter to 2,997 mbpd and outperformed the Zacks Consensus Estimate of 2,915 mbpd. MPC’s operating costs per barrel decreased from $5.55 in the year-ago quarter to $5.26.