How Murphy USA Stock Is Benefiting From Higher Merchandise Sales And Its New Loyalty Program

November 14th, 2019 by Trefis Team

Murphy USA (NYSE: MUSA), a retail gas station company, saw its stock rally by more than 35% over the last month, driven by stronger than expected Q3 results. While revenues were lower on a year-over-year basis, EPS came significantly ahead of Street estimates (reported $2.18, versus estimates of $1.58 per share). The earnings beat comes on the back of stronger fuel margins as well as increased merchandise margins, which were driven partly by higher tobacco sales. The company’s loyalty program Murphy Drive Rewards (MDR), which was launched nationwide earlier this year, is also helping it drive merchandise sales.

We ‘step back’ from these recent swings to review Murphy USA’s performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Has Murphy USA Stock Rallied Over The Last Month?, reviews the near term reasons and the big picture.

The context for the last few years:
 
A closer look At Murphy USA’s Total Revenues over the last few years and the outlook

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Operating Revenues for Murphy USA increased from $12,827 Mil in 2017 to $14,363 Mil in 2018; a 12% increase.

This compares with Operating Revenues growth of:

• -8.7% in 2016

• 10.6% in 2017

We expect Operating Revenues growth to be 0.4% in 2019.

A closer look At Murphy USA’s Total Expenses over the last few years and the outlook

Total Expense for Murphy USA increased from $12,586 Mil in 2017 to $14,089 Mil in 2018 – an increase of 11.9%.

This compares with Total Expense growth of:

• -9.9% in 2016

• 12% in 2017

We expect Total Expense to grow by 1% in 2019.

How does Murphy USA’s Revenue Growth compare with rivals?

For more information on how Murphy USA’s Revenue Growth compares with Marathon, Phillips 66, & Valero, view our interactive dashboard analysis.

How has Murphy USA’s EBT trended?

Earnings Before Taxes (EBT) for Murphy USA increased from $240 Mil in 2017 to $274 Mil in 2018 – an increase of 14.1%.

This compares with EBT growth of:

• 61.3% in 2016

• -31.8% in 2017

We expect EBT growth to be -36% in 2019.

How has Murphy USA’s Net Income and EPS trended?

For more information on Murphy USA’s Net Income and EPS, view our interactive dashboard analysis.

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