Murphy USA Profit Up, Beating Wall Street Expectations

Andrew Clyde

Murphy USA Inc., the nationwide gasoline and convenience store chain based in El Dorado, on Tuesday reported second-quarter earnings of $168.9 million.

That income, about $5.73 per share of stock, beat the expectations of most Wall Street analysts.

However, the company’s overall revenue of $2.38 billion fell short of expectations. According to The Associated Press, three analysts surveyed by Zacks Investment Research had expected income of $4.84 per share but foresaw revenue of $2.57 billion.

Net income during the same period last year was $32.7 million, or $1.01 per diluted share of stock. Gasoline sales by volume decreased about 25 percent compared with last year’s, but margins improved and merchandise sales rose to contribute 12.2% more to the bottom line.
“Murphy USA’s record second quarter performance once again demonstrated the competitive advantages of our distinctive business model and customer positioning,” company President and CEO Andrew Clyde said in a prepared statement.

“Fuel margins significantly outpaced volume declines due to COVID-19 related demand destruction even as commodity prices rose sharply in May and June,” he continued.”As volume recovers in July to over 90-percent of prior year levels reflecting our everyday low price positioning and more favorable geographies and locations, robust fuel margins continue to generate higher than normal fuel contribution for Murphy USA. Merchandise sales and margins have kept record pace as prior and current investments in tobacco categories led to further acceleration of additional market share gains while innovation in general merchandise and recovering traffic boosted non-tobacco categories.”

Clyde said the company’s outlook for the rest of the year and 2021 remains positive.

In the second quarter, the company opened three new stores and reopened eight raze-and-rebuild sites. The company divested all nine of its stores in Minnesota.