Murphy USA Inc. (MUSA) Misses Q3 EPS by 26c, Revenues Miss

Murphy USA Inc. (NYSE: MUSA) reported Q3 EPS of $2.27, $0.26 worse than the analyst estimate of $2.53. Revenue for the quarter came in at $2.84 billion versus the consensus estimate of $2.93 billion.

Key Highlights:

• Net income was $66.9 million, or $2.27 per diluted share, in Q3 2020 compared to net income of $69.2 million, or $2.18 per diluted share, in Q3 2019. The current quarter included a $10 million increase to SG&A expense related to a donation to the Company's charitable foundation while Q3 2019 included a loss on early debt extinguishment of $14.8 million
• Total fuel contribution (retail fuel margin plus product supply and wholesale ("PS&W") results including RINs) for Q3 2020 was 22.3 cpg compared to 20.1 cpg in Q3 2019
• Total retail gallons decreased 11.9% in Q3 2020 compared to Q3 2019, while volumes on a same store sales ("SSS") basis decreased 12.7%
• Merchandise contribution dollars increased 6.2% to $118.1 million compared to the prior-year quarter, on average unit margins of 15.6% in the current quarter
• During Q3 2020, 4 new stores opened and 5 raze-and-rebuilds reopened, while 1 store closed. Since the quarter end 1 additional new site and 6 raze-and-rebuilds have opened; there are 13 new retail sites and 14 raze-and-rebuild sites currently under construction
• Common shares repurchased during the third quarter of 2020 were approximately 0.7 million for $89.9 million at an average price of $136.98 per share

“Murphy USA delivered strong third quarter performance as continued improvements in customer traffic, sustained gains and double digit sales growth in key merchandise categories, along with higher total fuel margins in a rising price environment shaped performance for the past three months," said President and CEO Andrew Clyde. “These trends have continued into October where traffic continues to rebound and same store fuel gallons have recovered to 94% of prior year. As we begin to put 2020 in the rear view mirror, we are excited about our accelerated 2021 growth plans and our enhanced shareholder friendly capital allocation strategy.”

For earnings history and earnings-related data on Murphy USA Inc. (MUSA) click here.

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