Murphy USA (NYSE:MUSA) Releases Earnings Results, Beats Estimates By $1.22 EPS

Key Points

• Murphy USA exceeded quarterly expectations, reporting earnings per share of $9.59 versus the $8.37 consensus estimate and revenue of $6.89 billion compared with expectations of $6.25 billion.
• Shares fell $17.01 to $514.10 in midday trading despite the earnings beat. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $605.33.
• The company raised its quarterly dividend to $0.72 from $0.65, equivalent to an annualized $2.88 payout and a 0.6% yield.

Murphy USA (NYSE:MUSA - Get Free Report) announced its quarterly earnings results on Wednesday. The specialty retailer reported $9.59 earnings per share for the quarter, topping the consensus estimate of $8.37 by $1.22, FiscalAI reports. The company had revenue of $6.89 billion for the quarter, compared to analysts' expectations of $6.25 billion. Murphy USA had a net margin of 2.87% and a return on equity of 96.01%.

Murphy USA Stock Performance

Shares of NYSE:MUSA traded down $17.01 during midday trading on Wednesday, reaching $514.10. The company's stock had a trading volume of 372,948 shares, compared to its average volume of 313,443. The firm has a market capitalization of $9.50 billion, a PE ratio of 15.65, a P/E/G ratio of 1.37 and a beta of 0.29. Murphy USA has a twelve month low of $349.83 and a twelve month high of $636.04. The stock has a fifty day moving average of $527.33 and a 200 day moving average of $513.41. The company has a quick ratio of 0.54, a current ratio of 0.92 and a debt-to-equity ratio of 2.77.

Murphy USA Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Wednesday, November 4th will be paid a $0.72 dividend. The ex-dividend date is Wednesday, November 4th. This is an increase from Murphy USA's previous quarterly dividend of $0.65. This represents a $2.88 dividend on an annualized basis and a dividend yield of 0.6%. Murphy USA's dividend payout ratio (DPR) is currently 8.77%.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Royal Bank Of Canada lowered their price objective on shares of Murphy USA from $619.00 to $612.00 and set a "sector perform" rating for the company in a research report on Thursday, October 15th. The Goldman Sachs Group upgraded shares of Murphy USA from a "sell" rating to a "neutral" rating and boosted their target price for the stock from $380.00 to $550.00 in a report on Monday, July 6th. Bank of America increased their target price on shares of Murphy USA from $600.00 to $625.00 and gave the company a "neutral" rating in a research report on Friday, July 10th. JPMorgan Chase & Co. lowered their price target on Murphy USA from $633.00 to $626.00 and set an "overweight" rating for the company in a report on Thursday, October 22nd. Finally, Wall Street Zen lowered shares of Murphy USA from a "strong-buy" rating to a "buy" rating in a report on Monday, October 19th. Six investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $605.33.

Insider Buying and Selling at Murphy USA

In related news, SVP Eric Bartko sold 100 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $523.60, for a total transaction of $52,360.00. Following the completion of the transaction, the senior vice president directly owned 252 shares in the company, valued at $131,947.20. The trade was a 28.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Rosemary Turner sold 966 shares of the company's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $571.88, for a total transaction of $552,436.08. Following the completion of the sale, the director directly owned 449 shares in the company, valued at approximately $256,774.12. The trade was a 68.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 9.02% of the company's stock.

About Murphy USA

Murphy USA Inc is a U.S. operator of retail fuel and convenience stores. The company sells gasoline and diesel fuel along with tobacco products, packaged beverages, snacks, candy, grocery items, general merchandise and other convenience products. Many locations also offer prepared food and related services.

The company operates stores under the Murphy USA and Murphy Express brands, with a network concentrated primarily in the Southern, Southeastern and Midwestern United States. Murphy USA locations are commonly situated near Walmart stores, while Murphy Express sites generally operate as standalone convenience stores.

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