Murphy USA Q2 2024 Earnings Report
Key Takeaways
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.
Murphy USA
Murphy USA
Murphy USA Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.