Core Insights - Murphy USA reported revenue of $5.11 billion for the quarter ended September 2025, a decrease of 2.5% year-over-year, while EPS increased to $7.25 from $7.20 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $5.13 billion, resulting in a surprise of -0.44%, whereas the EPS exceeded expectations with a surprise of +9.85% against a consensus estimate of $6.60 [1] Financial Performance Metrics - Total fuel contribution was 30.7 cents per gallon, surpassing the average estimate of 29.64 cents from two analysts [4] - PS&W including RINs contribution was 2.4 cents, significantly better than the estimated -0.67 cents [4] - Retail fuel margin was reported at 28.3 cents, lower than the average estimate of 30.31 cents [4] - Retail fuel volume reached 1,254.30 million gallons, exceeding the estimate of 1,232.83 million gallons [4] - Operating revenues from petroleum product sales were $3.92 billion, below the average estimate of $3.97 billion, reflecting a year-over-year decline of 4.8% [4] - Other operating revenues were reported at $63 million, significantly higher than the estimated $38.4 million, marking an increase of 81.6% year-over-year [4] - Merchandise sales amounted to $1.12 billion, slightly below the average estimate of $1.13 billion, with a year-over-year increase of 3.7% [4] Stock Performance - Murphy USA's shares returned +2.1% over the past month, underperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Core Insights - Murphy USA reported quarterly earnings of $7.25 per share, exceeding the Zacks Consensus Estimate of $6.6 per share, and showing a slight increase from $7.2 per share a year ago, resulting in an earnings surprise of +9.85% [1] - The company generated revenues of $5.11 billion for the quarter ended September 2025, which fell short of the Zacks Consensus Estimate by 0.44% and decreased from $5.24 billion year-over-year [2] - Murphy USA has surpassed consensus EPS estimates three times over the last four quarters but has not beaten revenue estimates during the same period [2] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $6.46 on revenues of $4.94 billion, while for the current fiscal year, it is $23.18 on revenues of $19.61 billion [7] - The estimate revisions trend for Murphy USA was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Retail - Convenience Stores industry, to which Murphy USA belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a relatively strong position within the market [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q3 2025 was $129.9 million, or $6.76 per diluted share, down from $149.2 million, or $7.20 per diluted share in Q3 2024, impacted by a $12.6 million restructuring charge[4] - Total operating revenues for Q3 2025 were reported at $5,110 million, compared to $5,238.5 million in Q3 2024, reflecting a decrease[26] - Net income for Q3 2025 was $129.9 million, down from $149.2 million in Q3 2024, resulting in diluted earnings per share of $6.76 compared to $7.20[26] - EBITDA for Q3 2025 was $272.3 million, down 4.6% from $284.9 million in Q3 2024[39] - Cash provided by operating activities for Q3 2025 was $184.8 million, compared to $202.1 million in Q3 2024, reflecting a decrease of 8.1%[36] - Net income for Q3 2025 was $129.9 million, a decrease of 12.8% compared to $149.2 million in Q3 2024[36] Sales and Revenue - Total retail gallons increased by 1.2%, while same store sales (SSS) volumes declined by 2.6% in Q3 2025 compared to Q3 2024[4] - Merchandise contribution dollars rose by 11.3% to $241.2 million, with average unit margins increasing to 21.5% from 20.0% in Q3 2024[4] - Total merchandise sales revenue for same store sales increased by 0.7% to $214.1 million for the three months ended September 30, 2025, compared to $211.4 million in the same period of 2024[29] - The merchandise margin for the three months ended September 30, 2025, was 8.3%, compared to 8.4% in the same period of 2024[29] - The company reported a decrease in petroleum product sales to $3,924.7 million for the three months ended September 30, 2025, down from $4,121.4 million in the same period of 2024[28] Expenses and Costs - Total store and other operating expenses increased by $9.8 million in Q3 2025, mainly due to higher employee-related expenses and maintenance costs[10] - Retail fuel margins were 28.3 cents per gallon, an 11.3% decrease compared to the prior-year quarter[7] - Total fuel contribution for Q3 2025 was $384.8 million, a decrease of $19.4 million, or 4.8%, compared to Q3 2024, primarily due to lower fuel contribution margins[7] - Depreciation and amortization increased to $69.9 million in Q3 2025 from $62.8 million in Q3 2024, representing an increase of 17.9%[39] Capital and Investments - The company repurchased approximately 569.4 thousand common shares for $221.4 million at an average price of $388.80 per share during Q3 2025[4] - The company is currently constructing 39 new stores and has 2 raze-and-rebuild projects underway, which are expected to generate operational momentum heading into 2026[5] - Capital expenditures remain on track within the original guidance range of $450 million to $500 million as the company completes its 2025 build programs[20] - The company has acquired 4 locations in the Denver market, expected to reopen as Murphy USA locations before year-end 2025[16] Guidance and Projections - The updated guidance for 2025 includes organic growth with new store openings adjusted to 45 or more, down from up to 50, and raze-and-rebuilds revised to 23 to 24 from up to 30[16] - Retail fuel volume per store is now expected to be between 235 to 237 thousand gallons, down from the original range of 240 to 245 thousand gallons[16] - Merchandise contribution is projected to be between $870 million to $875 million, slightly increased from the previous range of $855 million to $875 million[16] - Store operating expenses (OPEX) are revised to a range of $36.2k to $36.6k per store, down from $36.5k to $37.0k[19] - SG&A costs are forecasted to be between $230 million to $240 million for the full year, reduced from the previous guidance of $245 million to $255 million[19] - The effective tax rate is now expected to be between 23.5% and 24.5%, lowered due to discrete state tax refunds and federal energy tax credits[20] Debt and Liabilities - The company had cash and cash equivalents of $42.8 million and long-term debt of $2.223 billion as of September 30, 2025[12] - Long-term debt, including capitalized lease obligations, increased to $2,223.0 million as of September 30, 2025, compared to $1,832.7 million as of December 31, 2024[34] - Total liabilities increased to $4,130.6 million as of September 30, 2025, from $3,701.5 million as of December 31, 2024[34] - Total debt borrowings in Q3 2025 amounted to $746.9 million, significantly higher than $225.0 million in Q3 2024[36] Cash Flow - The company reported a net cash outflow from investing activities of $116.9 million in Q3 2025, compared to an outflow of $131.5 million in Q3 2024[36] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 totaled $42.8 million, down from $52.5 million at the end of Q3 2024[36] - The company experienced a net decrease in noncash operating working capital of $63.3 million in Q3 2025, compared to a decrease of $23.8 million in Q3 2024[36]

Core Insights - Murphy USA Inc. reported a net income of $129.9 million, or $6.76 per diluted share, for Q3 2025, a decrease from $149.2 million, or $7.20 per diluted share, in Q3 2024 [1] Financial Performance - The company experienced a restructuring charge of $12.6 million in the quarter, which amounted to $9.5 million after-tax or $0.49 per diluted share [1]

Core Points - Murphy USA Inc. announced the appointment of Mindy K. West as President and Chief Executive Officer, effective January 1, 2026, succeeding Andrew Clyde, who will retire on December 31, 2025 [1][3][4] - The Board reaffirmed its 50/50 long-term capital allocation strategy, which includes a new share repurchase program and an increase in the quarterly cash dividend [2][5][7] Leadership Transition - Mindy K. West has been with Murphy USA since 1996 and has held various leadership roles, including Chief Operating Officer since February 2024 [3][4] - Andrew Clyde, the outgoing CEO, will remain with the company as a non-executive advisor until February 2027 to ensure a smooth transition [4][6] Capital Allocation Strategy - The Board approved a new share repurchase program of up to $2 billion, set to begin after the current $1.5 billion program is completed, of which $337 million remains [5][7] - A quarterly cash dividend of $0.63 per share was declared, reflecting a 19% increase from the previous quarter, with an annualized dividend of $2.52 [5][7] Growth and Reinvestment - The company plans to open 50 or more new-to-industry (NTI) locations annually, supported by a robust pipeline and recent acquisitions [8] - Management intends to increase reinvestment in existing locations starting in 2026, funded by tax benefits from recent legislation [8][9] Financial Position - Murphy USA aims to maintain a conservative balance sheet, targeting a long-term debt-to-earnings ratio of under 2.5x [9]

Core Insights - Murphy USA Inc. (MUSA) is expected to report third-quarter 2025 results on October 29, 2025, with an estimated profit of $6.6 per share and revenues of $5.1 billion [1][9] Group 1: Recent Performance - In the last reported quarter, MUSA's earnings were $7.36 per share, surpassing the Zacks Consensus Estimate of $6.82, attributed to higher fuel margins, although revenues of $5 billion fell short by $468 million [2] - MUSA has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 1.9% [3] Group 2: Future Expectations - The Zacks Consensus Estimate for third-quarter 2025 earnings has increased by 2.8% in the past week, but indicates an 8.3% year-over-year decrease, while revenues are projected to decline by 2% compared to the previous year [3][9] - Total revenues for the upcoming quarter are expected to decrease from $5.24 billion in the same quarter last year, with total cost of goods sold anticipated to rise to $4.7155 billion from $4.6168 billion [5] Group 3: Operational Factors - MUSA anticipates challenges in the second half of the year, with volumes potentially falling below the annual guidance range of 240,000 to 245,000 average per store per month, and headwinds from key categories like cigarettes and lottery [5] - On a positive note, MUSA has over 45 new stores under construction, which is expected to enhance growth prospects for the end of 2025 and into 2026, with plans for 15 to 20 additional new store openings [6] Group 4: Earnings Prediction Model - The Zacks model does not predict an earnings beat for MUSA this quarter, as the Earnings ESP is -2.50%, indicating a lower likelihood of surpassing earnings expectations [7]

Core Points - Murphy USA's Executive Vice President and Chief Financial Officer, Galagher Jeff, has resigned as of October 14, 2024, after a brief tenure that began earlier in the year [2][3][4] - The resignation follows a financially challenging year for Murphy USA, which saw revenue declines due to significant investments in new store development and a recent layoff of about 100 corporate employees [3][4] - Donald Smith Jr., who has been with Murphy USA since 2013, has been appointed as the interim CFO, with no immediate plans announced for a permanent replacement [6] Financial Performance - Murphy USA experienced revenue declines in 2024, attributed to heavy investments in new store development [3] - The company laid off approximately 100 corporate team members as part of efforts to enhance operational effectiveness [3] Leadership Changes - Galagher Jeff's departure is confirmed not to be due to any disagreements regarding the company's operations or financial performance [4] - Donald Smith Jr. has taken over as interim CFO, having previously served as VP and controller since the company's spin-off from Murphy Oil [6]

Core Insights - Argent Capital Management purchased 43,216 shares of Murphy USA, valued at approximately $17.11 million, as disclosed in SEC filings on October 14, 2025 [2][3][10] - Following this transaction, Argent's total holdings in Murphy USA reached 130,640 shares, worth $50.72 million at the end of the quarter [2][3] Company Overview - Murphy USA reported a total revenue of $19.48 billion and a net income of $490.50 million for the trailing twelve months (TTM) [4] - The company's dividend yield stands at 0.52%, with shares priced at $375.91 as of October 13, 2025 [4] - Murphy USA operates 1,679 retail gasoline stores primarily in the Southeast, Southwest, and Midwest regions of the United States [5] Performance Metrics - As of October 13, 2025, Murphy USA's stock price had decreased by 23.19% over the past year, significantly underperforming the S&P 500 by 37.15 percentage points [3] - Despite the apparent financial challenges, Murphy USA is reinvesting earnings into expansion, with plans to open 50 new stores within a year [7][9] Strategic Initiatives - The company has implemented strong cost control measures and increased dividends in August 2025, indicating a focus on financial stability and growth [7] - Murphy USA's partnership with Walmart is expected to drive customer traffic to its gas stations, potentially improving future financial performance [9]

Core Insights - Murphy USA Inc. will release its third quarter 2025 earnings results on October 29, 2025, after market close, followed by a conference call on October 30, 2025 [1] Company Overview - Murphy USA is a leading retailer of gasoline and convenience merchandise with over 1,750 stores across the Southwest, Southeast, Midwest, and Northeast United States [2] - The company employs approximately 17,200 individuals and serves around two million customers daily through its retail network in 27 states [2] - Most Murphy USA stores are strategically located near Walmart Supercenters, in addition to standalone stores operating under the Murphy USA, Murphy Express, and QuickChek brands [2] - Murphy USA ranks 231 among Fortune 500 companies [2]

Group 1 - ClearBridge Investments released its second-quarter 2025 investor letter, highlighting volatility in small-cap stocks, with the Russell 2000 Index rebounding 10% from its November 2024 highs, but underperforming larger-cap peers [1] - The Russell 2000 returned 8.5% for the quarter, while the Russell 1000 Index returned 11.1%, indicating a relative underperformance of small-cap stocks [1] - The investor letter emphasized the importance of stock selection, particularly within the consumer discretionary sector, which faced challenges in the second quarter [3] Group 2 - Murphy USA Inc. (NYSE:MUSA) experienced a one-month return of -0.92% and a 52-week loss of 27.18%, with a market capitalization of $7.528 billion as of September 12, 2025 [2] - The company reported weaker-than-expected earnings due to lower fuel volumes, rising operating expenses, and a decline in same-store sales, despite an increase in total merchandise sales [3] - Murphy USA's focus on rising fuel margins and low-cost operating discipline, along with investments in store remodels and geographic expansion, are expected to drive consistent growth [3] Group 3 - Murphy USA Inc. was held by 35 hedge fund portfolios at the end of the second quarter, an increase from 33 in the previous quarter, indicating some interest from institutional investors [4] - Despite the potential of Murphy USA as an investment, the company is not among the 30 most popular stocks among hedge funds, with certain AI stocks being viewed as having greater upside potential [4]