NYSE$MUSA

Murphy USA Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Murphy USA's advantaged business model delivered strong second quarter results, driven by outperformance in fuel and tobacco categories. Record retail fuel contribution dollars offset a slow start to the year, demonstrating robust structural margin dynamics. Nicotine sales gained share, while center-of-store results were mixed, particularly impacting QuickChek in the Northeast.

Murphy USA reported a net income of $144.8 million, or $6.92 per diluted share, for Q2 2024, compared to $132.8 million, or $6.02 per diluted share, in Q2 2023. The company experienced increased total fuel contribution and merchandise contribution, offset by higher store operating expenses. The company is revising its full-year merchandise margin guidance.

  • Net income increased to $144.8 million, or $6.92 per diluted share, compared to $132.8 million, or $6.02 per diluted share in the prior year.
  • Total fuel contribution rose to 31.7 cpg, up from 29.5 cpg in the same quarter last year.
  • Merchandise contribution dollars grew by 4.7% to $216.5 million, with unit margins at 20.0%.
  • The company repurchased approximately 238.4 thousand common shares for $107.1 million during the quarter.

Headline financials

Total Revenue

$5.45B

Previous: $5.59B-2.4%
EPS

$6.92

Previous: $6.02+15.0%
Total Fuel Contribution

31.7

Previous: 29.5+7.5%
Merchandise Unit Margin

20.0%

No prior period
Retail Fuel Volume - Chain

1.2B

No prior period
Retail Fuel Volume Per Store APSM

247.2K

No prior period
Retail Fuel Volume Per Store SSS

244.3K

No prior period
Retail Fuel Margin

29.7

No prior period
Capital Expenditures

-$118M

No prior period
Free Cash Flow

$145M

Previous: $133M+9.0%
Net Income

$145M

Previous: $133M+9.0%
Operating Income

$217M

Previous: $199M+9.3%
Gross Profit

$5.18B

Previous: $5.33B-2.8%
Cash & Equivalents

$79.8M

Previous: $92.9M-14.1%
Total Assets

$4.43B

Previous: $4.2B+5.4%

Revenue & EPS history

Murphy USA · Revenue · Quarterly

$5.45B

Q2 2024-2.4%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Murphy USA · $966M total across 1 segment · Q1 2023

  • Merchandise Sales
    $966M+8.3%

Forward guidance

The company is updating full-year merchandise contribution guidance to a range of $830 million to $840 million, down from the original range of $860 million to $880 million. Raze-and-rebuild sites are revised to more than 40, up from 35 to 40.

Tailwinds

  • Nicotine results have been stronger than planned in 2024.
  • Raze-and-rebuild sites are revised to more than 40.
  • Accelerated NTI activity is expected in the second half of 2024 and into 2025.
  • Customer spend on non-discretionary categories remains robust in the company's core footprint.
  • Structural margin dynamics remain intact.

Headwinds

  • Weaker than expected consumer demand, particularly in the Northeast, impacting core food and beverage traffic drivers and related discretionary center-of-store sales.
  • Inflation and other drivers are impacting traffic at QuickChek.
  • Lower demand is expected to persist through the remainder of 2024.
  • Benefits from initiatives to drive further value in the business are being offset.
  • Full-year merchandise contribution results have been updated to a lower range.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.5%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.5%

Avg return

30 days after

50%

26 / 52 earnings

Positive

+26.0%

Q3 2019

Best reaction

-12.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+17.5%-1.8%
Q4 2025-10.7%-18.3%-1.4%
Q3 2025-7.3%-6.5%-1.8%
Q1 2025-12.0%-14.0%-16.0%
Q4 2024-3.2%-6.2%-11.7%
Q3 2024+2.4%+0.6%+14.8%
Q2 2024+2.0%+0.7%+2.9%
Q1 2024-4.2%-2.7%+6.0%
Q4 2023+11.5%+9.8%+15.7%
Q3 2023+2.3%+3.2%+2.2%
Q2 2023-2.6%-0.2%+5.0%
Q1 2023+1.6%+5.7%+1.7%
Q4 2022-4.1%-4.5%-4.7%
Q3 2022+5.1%+8.4%+0.8%
Q2 2022+8.6%+7.9%+10.6%
Q1 2022+6.2%+1.9%+7.1%
Q4 2021-5.1%-9.1%-8.4%
Q3 2021-3.3%-2.2%+6.1%
Q2 2021+0.3%+0.5%+6.4%
Q1 2021-2.7%-0.7%-5.5%
Q4 2020+3.1%+0.4%-2.3%
Q3 2020+1.0%-3.5%+3.5%
Q2 2020+18.7%+15.2%+18.6%
Q1 2020+7.0%+5.6%+8.7%
Q4 2019-6.8%-9.2%-14.2%
Q3 2019+26.0%+23.5%+25.6%
Q2 2019-1.5%-0.6%+3.3%
Q1 2019+5.4%+4.8%-0.3%
Q4 2018-8.9%-8.3%-2.9%
Q3 2018-0.7%+0.6%-0.8%
Q2 2018+5.0%+6.9%+4.7%
Q1 2018+3.8%+5.7%+6.7%
Q4 2017-7.2%-16.1%-12.5%
Q3 2017-1.8%+2.1%+4.6%
Q2 2017-4.4%-6.1%-15.3%
Q1 2017-5.5%-4.9%-2.2%
Q4 2016+4.7%+2.4%+1.8%
Q3 2016-2.4%-5.9%+2.5%
Q2 2016+3.4%+4.6%-0.7%
Q1 2016+13.9%
Q4 2015+0.3%
Q3 2015-4.9%
Q2 2015-3.9%
Q1 2015-8.0%
Q4 2014-1.8%
Q3 2014+2.0%
Q2 2014+3.8%
Q1 2014+1.4%
Q4 2011-1.2%
Q1 2012-1.2%
Q4 2013-0.9%
Q3 2013+2.6%
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012

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