Murphy USA (NYSE:MUSA) Releases Quarterly Earnings Results, Beats Expectations By $1.32 EPS

Key Points

• Murphy USA significantly beat earnings expectations: Quarterly EPS came in at $11.27 versus the $9.95 consensus estimate, while revenue increased 36% year over year. EPS also rose from $7.36 in the same quarter last year.
• The stock fell 1.4% despite the strong results, closing at $581.27. Murphy USA raised its quarterly dividend to $0.64 per share, equivalent to a $2.56 annualized payout and a 0.4% yield.
• Analyst sentiment remains moderately positive: Six analysts rate the stock Buy and five rate it Hold, producing a consensus “Moderate Buy” rating and an average price target of $596.44.

Murphy USA (NYSE:MUSA - Get Free Report) released its quarterly earnings data on Wednesday. The specialty retailer reported $11.27 earnings per share for the quarter, beating the consensus estimate of $9.95 by $1.32, Zacks reports. Murphy USA had a net margin of 2.81% and a return on equity of 91.05%. During the same period last year, the company posted $7.36 earnings per share. The firm's revenue for the quarter was up 36.0% on a year-over-year basis.

Murphy USA Stock Down 1.4%

MUSA traded down $8.27 during trading on Wednesday, hitting $581.27. 280,545 shares of the company's stock were exchanged, compared to its average volume of 334,652. The company has a quick ratio of 0.48, a current ratio of 0.83 and a debt-to-equity ratio of 3.24. The business's 50 day moving average is $574.11 and its two-hundred day moving average is $508.07. Murphy USA has a fifty-two week low of $349.83 and a fifty-two week high of $636.04. The stock has a market cap of $10.74 billion, a P/E ratio of 20.09, a PEG ratio of 1.92 and a beta of 0.28.

Murphy USA Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Monday, May 18th were paid a dividend of $0.64 per share. This is a boost from Murphy USA's previous quarterly dividend of $0.63. The ex-dividend date was Monday, May 18th. This represents a $2.56 dividend on an annualized basis and a yield of 0.4%. Murphy USA's dividend payout ratio (DPR) is presently 8.85%.

Insider Buying and Selling at Murphy USA

In other news, SVP Keith A. Emery sold 517 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $574.49, for a total transaction of $297,011.33. Following the completion of the sale, the senior vice president directly owned 500 shares of the company's stock, valued at $287,245. The trade was a 50.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Diane N. Landen sold 3,000 shares of the company's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $547.25, for a total transaction of $1,641,750.00. Following the completion of the sale, the director owned 53,841 shares in the company, valued at $29,464,487.25. This represents a 5.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 4,567 shares of company stock valued at $2,494,673. Corporate insiders own 9.02% of the company's stock.

Institutional Trading of Murphy USA

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MUSA. B. Riley Wealth Advisors Inc. purchased a new position in shares of Murphy USA during the second quarter valued at approximately $308,000. Quadrant Capital Group LLC grew its holdings in Murphy USA by 8.1% during the third quarter. Quadrant Capital Group LLC now owns 664 shares of the specialty retailer's stock worth $258,000 after buying an additional 50 shares in the last quarter. Janney Montgomery Scott LLC bought a new stake in Murphy USA during the fourth quarter worth $222,000. Rothschild Wealth LLC purchased a new stake in Murphy USA in the 4th quarter valued at $215,000. Finally, Meeder Asset Management Inc. purchased a new stake in Murphy USA in the 4th quarter valued at $200,000. 80.81% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on MUSA. Bank of America increased their target price on shares of Murphy USA from $600.00 to $625.00 and gave the stock a "neutral" rating in a research note on Friday, July 10th. Weiss Ratings raised shares of Murphy USA from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, June 30th. Wall Street Zen upgraded shares of Murphy USA from a "buy" rating to a "strong-buy" rating in a report on Saturday, June 27th. Royal Bank Of Canada reissued a "sector perform" rating and set a $619.00 price objective on shares of Murphy USA in a research report on Wednesday, July 29th. Finally, Zacks Research downgraded Murphy USA from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 22nd. Six analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $596.44.

About Murphy USA

Murphy USA is a leading downstream marketer of gasoline, diesel and convenience store products in the United States. Headquartered in El Dorado, Arkansas, the company was originally established as part of Murphy Oil Corporation and was spun off as an independent public entity in 2013. Since its separation, Murphy USA has focused on retail fueling services and convenience offerings designed to deliver value and convenience to consumers.

The company's primary operations center on two retail formats.

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