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EL DORADO, Ark. - Murphy USA Inc. (NYSE: MUSA), the $7.7 billion market cap fuel retailer, released preliminary operational results for April 1 to May 31, 2025, ahead of executive participation in upcoming investor conferences. According to InvestingPro analysis, the company appears fairly valued at current levels.
The fuel retailer reported second quarter-to-date all-in fuel margins of 31.7 cents per gallon, with retail margins at 29.6 cents. Total fuel volumes increased 0.5% compared to the same period last year, though same-store sales volumes decreased 1.1%.
Total merchandise sales rose 1.1% with margin contribution dollars up 0.3%. On a same-store sales basis, nicotine product sales declined 0.9% with margins down 0.1%, while non-nicotine sales decreased 0.7% with margins dropping 2.5%.
Operating expenses increased 2.8% on an average per store monthly basis.
The company also noted that 22 new stores and 18 raze-and-rebuild projects are currently under construction.
Murphy USA executives will attend the Jefferies Consumer Conference on June 18 and the JP Morgan Energy, Power, Renewables, and Mining Conference on June 24, according to the press release statement.
Murphy USA operates more than 1,750 retail gasoline and convenience stores across 27 states, primarily located near Walmart Supercenters. The company also operates standalone stores under the Murphy Express and QuickChek brands.
In other recent news, Murphy USA Inc. reported a significant miss in its first-quarter 2025 earnings, with earnings per share (EPS) of $2.63 falling short of the forecasted $3.93. Revenue also disappointed, coming in at $4.53 billion against an expected $4.8 billion. Following this, KeyBanc Capital Markets adjusted its price target for Murphy USA from $550 to $525, maintaining an Overweight rating, while Stephens cut the target from $530 to $475, also retaining an Overweight rating. Raymond James took a different approach, downgrading the stock from Outperform to Market Perform due to concerns about the company’s ability to grow its core EBITDA.
The analysts attributed the earnings shortfall to several factors, including lower-than-expected retail fuel margins and a decline in same-store gallons by 4.2%. Adverse weather conditions and holiday timing were cited as temporary factors affecting performance. Despite these challenges, analysts noted some positive trends post-quarter, such as steady retail fuel margins and a slight increase in fuel volume.
Murphy USA continues its expansion efforts, adding eight new stores in the first quarter, and plans to enhance store productivity and efficiency. Analysts from KeyBanc and Stephens remain optimistic about the company’s long-term prospects, highlighting potential benefits from the Every Day Low Price (EDLP) model and ongoing store growth. However, Raymond James expressed caution, emphasizing the need for consistent EPS growth to justify the stock’s valuation.
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