Murphy USA Inc (MUSA) Reports Q3 2023 Earnings: Net Income Drops to $167.7 Million
Net income for Q3 2023 was $167.7 million, a decrease from $219.5 million in Q3 2022.
Total fuel contribution for Q3 2023 was 34.5 cpg, compared to 37.6 cpg in Q3 2022.
Merchandise contribution dollars for Q3 2023 increased 3.0% to $211.8 million.
The Company repurchased approximately 201.1 thousand common shares for $65.3 million.
On November 1, 2023, Murphy USA Inc (NYSE:MUSA), a leading marketer of retail motor fuel products and convenience merchandise, announced its financial results for the third quarter of 2023. The company reported a net income of $167.7 million, or $7.69 per diluted share, a decrease from the net income of $219.5 million, or $9.28 per diluted share, in Q3 2022.
Financial Performance
The total fuel contribution for Q3 2023 was 34.5 cpg, a decrease from 37.6 cpg in Q3 2022. Total retail gallons decreased by 2.5% in Q3 2023 compared to Q3 2022. However, merchandise contribution dollars for Q3 2023 increased by 3.0% to $211.8 million on average unit margins of 20.1%, compared to the prior-year quarter contribution dollars of $205.7 million on unit margins of 20.0%.
Share Repurchase and Dividend
During Q3 2023, Murphy USA Inc (NYSE:MUSA) repurchased approximately 201.1 thousand common shares for $65.3 million at an average price of $325.00 per share. On October 26, 2023, the company announced a quarterly cash dividend of $0.41 per share, or $1.64 per share on an annualized basis, reflecting a 5.1% increase from the prior quarter. The dividend is payable on December 1, 2023, to stockholders of record as of November 6, 2023.
CEO Commentary
President and CEO Andrew Clyde commented on the company's performance, stating
We are very pleased with third quarter performance as we comp last year's extraordinary earnings. On a two-year stack basis, Murphy USA demonstrated industry leading fuel volume and tobacco gains, while current year fuel margins highlight the sustainability of elevated industry margins in a less volatile setting. Momentum carried through to October especially at QuickChek where new promotions and initiatives have contributed to record food and beverage profits.
2023 Guidance Update
The company updated its 2023 guidance due to ongoing challenges in permitting new sites, contractor delays, and other supply chain hurdles. The forecast is now 27-30 new stores to open in 2023, versus the "up to 45" in the original guidance. The expected range of capital expenditures should approximate $325 million to $375 million, from $375 million to $425 million previously.
Explore the complete 8-K earnings release (here) from Murphy USA Inc for further details.
This article first appeared on GuruFocus.
