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IBDvalueinvestin (98.52)

Even stocks that Beat like TSO getting crushed this morning.



February 20, 2009 – Comments (1) | RELATED TICKERS: ANDV

TSO beats by .08 by is still down by -.95 to $15.25 albeit on light volume 1,500 shares.

I would have bet the farm they would have been up +3 on such news had you asked me yesterday.

Tesoro posts 4Q profit, driven by stronger margins
Friday February 20, 8:02 am ET

Tesoro reports 4Q profit on stronger margins; sales drop SAN ANTONIO (AP) -- Tesoro Corp. posted a fourth-quarter profit, driven by stronger margins, particularly in Hawaii and California, as the cost of crude oil plunged.

The independent oil refiner on Thursday reported a quarterly profit of $97 million, or 70 cents per share, compared with a loss of $40 million, or 29 cents per share, a year earlier. Excluding special items, profit was $137 million, or 99 cents per share.

a survey by Thomson Reuters, analysts said they expected a profit of 91 per share, on average. Analysts typically exclude one-time items.

Revenue for the quarter fell 34 percent to $4.33 billion, from $6.53 billion a year ago.

Analysts forecast an average revenue of $5.78 billion.

For the full-year 2008, earnings totaled $278 million, or $2 per share, compared with $566 million, or $4.06 per share, in 2007. Revenue rose 29 percent to $28.3 billion.

Tesoro said it plans to lower 2009 capital spending to $600 million, down from the 2008 spending level of $724 million.

Shares of Tesoro closed at $16.20 on Thursday.

1 Comments – Post Your Own

#1) On February 20, 2009 at 9:13 AM, IBDvalueinvestin (98.52) wrote:

The Short take on TSO is that they missed revenue by $1.4B without pointing out that Gasoline prices fell off a cliff by more than 50% so missing on revenue by only $1.4B is actually a positive because revenue fell less on percentage terms than the price of gasoline.
I guess the shorts have not seen Gasoline price go down from $4 to $1.75 and don't even want to discuss the .99 eps qtr TSO posted due to much greater profit margins with the lower oil price.

The lost revenue was caused by being able to fill up your car tank with gasoline with only $20 instead of with $50 last summer.

What matters is not Revenue but Higher profit margins.
TSO is making bigger profits with Gasoline at $1.75 then it did when it had bigger revenues and gasoline at $4

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