Murphy USA (NYSE: MUSA) reported strong second-quarter profits Wednesday of $144.8 million, up 9%from $132.8 million in the same period last year.
The El Dorado fuel and retail chain’s net income of $6.92 per share fell just short of Wall Street expectations. But CEO Andrew Clyde, in a news release, said Murphy USA’s “advantaged business delivered strong second-quarter results” by performing well in fuel and tobacco sales.
The company reaped 31.7 cents per gallon on fuel sales in the quarter that ended June 30, compared to 29.5 cents per gallon in the second quarter of 2023. Merchandise sales were up 4.7% compared with a year ago.
Four analysts surveyed by Zacks Investment Research had predicted average earnings per share of $6.91.
Murphy USA announced the quarterly earnings after markets closed on Wednesday. The stock price was $504.92 heading into the trading day Thursday. Shares are up nearly 146% since the beginning of the year.
“Record second quarter retail fuel contribution dollars helped make up for a slow start in the first quarter and clearly demonstrated that structural margin dynamics remain intact, despite limited volatility versus prior years,” Clyde said in a statement. “Nicotine continues to gain share, while center-of-store results remain mixed, particularly in the Northeast where inflation and other drivers are impacting traffic at QuickChek, more than offsetting the benefits of our initiatives to drive further value in the business.”
Murphy USA acquired 157 QuickChek stores in a $645 million cash deal in early 2021. Those locations are in central and northern New Jersey and elsewhere in the New York City metro area.
In the second quarter, Murphy USA repurchased 238,000 common shares at an average price of $449 per share. It paid a quarterly cash dividend of 44 cents, or $1.76 on an annualized basis.
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