Shares of San Antonio, Texas-based firm
) soared to a 52-week high of $59.90 on Monday, Mar 25, 2013,
buoyed by a slew of positive developments. The closing price of
the independent refiner on Mar 25, 2013, was $57.85, representing
a solid 1-year return of more than 100% and an impressive
year-to-date return of about 27%. The average volume of shares
traded over the last 30 days stands at approximately 3.6 million.
Tesoro delivered a positive earnings surprise in the two of the
last four quarters with an average beat of 12.19%. This Zacks
Rank #3 (Hold) company has a market cap of $8.09 billion and a
long-term expected earnings growth rate of 13.05%.
The company reported earnings per share (excluding special items)
of $1.34, missing the Zacks Consensus Estimate of $1.38 but
improving significantly from the year-ago adjusted loss of 87
cents. This was aided by higher margins and a significant crude
oil differentials advantage.
Tesoro reported revenue of $8,273.0 million for the three-month
period ending Dec 31. This was 15.4% above Zacks Consensus
Estimate and was also up 7.3% year over year on the back of
higher throughput and solid refining margins.
Additionally, Tesoro announced a 33.0% increase in its quarterly
dividend to 20 cents per share, or 80 cents per share annualized.
The dividend was paid on Mar 15, to shareholders of record on Feb
Tesoro is one the largest independent oil refiners in the U.S.
with a combined crude oil processing capacity of approximately
675,000 Bbl/d. Major advantages for the company include the
scale and diversification benefits afforded by its portfolio of
However, the inherent volatility of the refining business reduces
the accuracy and reliability of long-term earnings and revenue
estimates. Additionally, results are exposed to unplanned
shut-downs that may have a lingering impact.
But there are certain other firms in the oil refining and
marketing industry that are performing better and are worth
considering at current level. These include
Lehigh Gas Partners LP
Marathon Petroleum Corporation
PBF Energy Inc.
). All these stocks sport a Zacks Rank #1(Strong Buy).
LEHIGH GAS PTNR (LGP): Free Stock Analysis
MARATHON PETROL (MPC): Free Stock Analysis
PBF ENERGY INC (PBF): Free Stock Analysis
TESORO CORP (TSO): Free Stock Analysis Report
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