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Jun 30, 2024
Murphy USA Q2 2024 Earnings Report
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.
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.
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.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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