Murphy USA Inc., the nationwide fuel and convenience retailer based in El Dorado, reported second-quarter financial results Wednesday including net income of $55.6 million, or $1.51 per diluted share.
The profit numbers compare with last year’s second-quarter income of $46.3 million, and were better than analyst estimates. Revenue was $3.2 billion, up 6 percent, and the company attributed the solid results to higher total fuel margins, higher network fuel margins and increased merchandise sales.
Total retail gallons sold increased 2.5 percent in the quarter, and other merchandise sales grew 5.5 percent to $97.7 million with a record-setting margin of 16.1 percent, the company said.
“Our strong results in the second quarter demonstrate the substantial earnings power of our low-cost, high-volumn business model during periods of favorable retail fuel margins,” President and CEO Andrew Clyde said in a statement. “Meanwhile, our merchandise profits are accelerating while per-store operating costs continue to decline, creating further upside operating leverage while reducing the company’s earnings volatility during periods of challenging fuel margins.”
The company (Nasdaq: MUSA) opened five all-new stores during the quarter, reopened 12 “raze-and-rebuild” sites, according to a company news release. It also repurchased some 726,000 common shares for $49 million, an average price of $67 a share, under a February 2016 program authorizing up to $500 million in repurchases.
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