Why Tesoro (TSO) Is Down Today

NEW YORK (TheStreet) -- Tesoro  (TSO) was falling 5.27% to $47.32 on Thursday after the independent refiner reported fourth-quarter earnings that missed analysts' expectations.

The San Antonio-based company earned $5 million, or 4 cents a share, excluding items, in the quarter. Analysts were calling for earnings of 31 cents a share.

Tesoro said fourth-quarter results included $40 million in stock-based compensation expenses, along with a net loss of $3 million, or 2 cents a share, from the sale of its Hawaii refinery. Including these items, the company posted a loss of $7 million, or 5 cents a share, down from net income of $27 million, or 19 cents a share, in the same period a year earlier.

"Despite a lower margin and crude oil differential environment, and weaker earnings relative to 2012, 2013 was a year of important strategic accomplishments for Tesoro," said President and CEO Greg Goff in the company's statement.  "The acquisition of the Los Angeles refining, marketing and logistics assets, the acquisition of the Northwest Products System and the sale of our business in Hawaii collectively represent significant achievements in the continuing transformation of Tesoro. We returned over $500 million to shareholders in the form of dividends and share repurchases and ended the year with a strong balance sheet even after nearly $3 billion in acquisitions."

TheStreet Ratings team rates TESORO CORP as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about its recommendation:

"We rate TESORO CORP (TSO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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