UPDATE: CST Brands Shares Surge After Q3 Results

Shares of CST Brands

jumped more than 4% in pre-market trading after the company reported a rise in its earnings for the third quarter. The San Antonio, Texas-based company posted quarterly earnings of $63 million, or $0.83 per share, up from $42 million or $0.56 per share, in the year-ago period. Excluding non-recurring items, the company's earnings rose to $0.90 per share from $0.58 per share. Its revenue slipped to $3.22 billion from $3.32 billion in the period. However, analysts were projecting earnings of $0.56 per share on revenue of $3.29 billion. Its operating income rose to $104 million from $69 million, while adjusted EBITDA jumped to $139 million from $102 million. US motor fuel gross profit surged 52% for the third quarter, while US merchandise gross profit rose 5%. However, overall Canada gross profit climbed 4%. The company has opened 19 new stores in the US and 6 stores in Canada year-to-date. CST Brands projects to open a total of 28 new stores in the US and 10 new stores in Canada during 2014. For the nine month period ended September 30, 2014, cash flow provided by operating activities was $293 million. “We delivered strong results this quarter and finalized preparations for successful closings of the CrossAmerica and Nice N Easy transactions in October and November, respectively,” said Kim Lubel, Chairman and CEO of CST Brands. “We executed well, posting year-over-year operating income growth in both our U.S. and Canadian businesses, while further benefiting from a favorable fuel environment.” CST Brands shares jumped 4.40% to $41.50 in pre-market trading.