Murphy USA (MUSA) Up 3.3% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Murphy USA (MUSA). Shares have added about 3.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Murphy USA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.Murphy USA Q2 Earnings Beat, Sales MissMurphy USA announced second-quarter 2025 earnings per share of $7.36, which beat the Zacks Consensus Estimate of $6.82 and compared favorably with the year-ago profit of $6.92. The outperformance was primarily on the back of higher fuel margins.Murphy USA’s operating revenues of $5 billion fell 8.2% year over year and missed the consensus mark by $468 million due to lower-than-expected petroleum product sales.Revenues from petroleum product sales came in at $3.9 billion, well below our estimate of $4.2 billion and down 11.3% from the second quarter of 2024. On the other hand, merchandise sales, at $1.1 billion, were up 1.1% year over year.  Key TakeawaysMUSA’s total fuel contribution edged up 0.7% year over year to $393 million on higher retail contribution and margin expansion. Total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 32 cents per gallon, up 1% from the second quarter of 2024.Retail fuel contribution fell 1.7% year over year to $359.1 million as margins narrowed to 29.2 cents per gallon from 29.7 cents in the corresponding period of 2024. Retail gallons declined 0.2% from the year-ago period to 1,229.3 million but beat our estimate of 1,227.2 million. Volumes on an SSS basis (or fuel gallons per store) deteriorated 2.1% from the second quarter of 2024 to 239.3 thousand.Contribution from Merchandise edged up 1% to $218.7 million on slightly higher sales even as unit margins remained flat year over year at 20%. On an SSS basis, total merchandise contribution decreased 0.9% year over year, primarily due to 2.4% lower non-nicotine margins. Meanwhile, merchandise sales decreased 1% on an SSS basis, due to a drop in nicotine as well as non-nicotine sales.The Zacks company’s monthly fuel gallons fell 2.3% from the prior-year period, while merchandise sales decreased 0.7% on an average per-store monthly basis.Balance SheetAs of June 30, Murphy USA — which opened six new retail locations in the quarter and closed one outlet to take its store count to 1,766 — had cash and cash equivalents of $54.1 million and long-term debt (including lease obligations) of $2.1 billion, with a debt-to-capitalization of 76.2%.During the quarter, MUSA bought back shares worth $211.9 million.                                                                              How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.VGM ScoresCurrently, Murphy USA has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top 20% for value investors.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Murphy USA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Murphy USA Inc. (MUSA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks