5 Expectations From Barclays For Tesoro's Q2 Earnings

Tesoro Corporation TSO could deliver an EPS miss in 2Q, Barclays’ Paul Y. Cheng said in a report. He maintained an Overweight rating on the company, with a price target of $105.

Related Link: Tesoro Upgraded For Third Time In A Month

The five expectations mentioned by the analyst were:

1. Tesoro is expected to report its 2Q16 operating EPS at $1.71, short of the consensus estimate of $1.77. “Our 2Q16 estimate assumes zero inventory/trading gain/(loss), and no LCM adjustment,” Cheng wrote.
2. Throughput could average 811 mb/d [000s b/d], representing 4 percent sequential and y/y growth.
3. Realized refining margin is expected to average $11.6/bl, up from the 1Q16 level of $9.7/bl, while representing a decline from the 2Q15 level of $19.1/bl.
4. Operating costs are estimated at $4.8/bl, down 13 percent sequentially and y/y.
5. Retail fuel margins are estimated at $0.100/gal, down from the 1Q16 level of $0.139/gal and 2Q15 level of $0.137/gal.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!