TSO has seen its revenues peaking at around $5.6 billion on a quarterly basis. For the June 2008 quarter, expectations are for the company to have registered approximately $5.8 billion, in line with $5.6 billion from last year in the same quarter. On a yearly basis, expectations are for about $22.8 billion in revenue, a growth of about 4% over last year's $22 billion.
The impact to the firm's profitability has been much more pronounced - on a quarterly basis, there are actually losses showing up, with a March 2008 loss per share of $0.80 surprising everyone. the 2008 June quarter which will be released soon should show earnings of somewhere between a loss of $0.25 cents per share, or a gain of $0.28 per share. Kind of a wide range, but the 15 analysts who follow the company are not really sure of where the firm will come in. On an annual basis, earnings in 2008 will probably be around $0.89, and this estimate has been slashed down from nearly $4.00 per share in EPS some 90 days ago.
There is also a meaningful short position in these shares, with 16 million shares short as of June 2008, or nearly 11% of the outstanding float of the company. We like the small relative size of TSO as well - at under $5 billion the firm makes an outstanding acquisition candidate. At $21 per share of book value, there is an opportunity here for one of the majors to acquire TSO with hardly a flex of their muscles.
TSO's balance sheet currently has a cash cushion of just over $41 million. The debt they carry though, amounts to over $2 billion. The firm's EBITDA is $930 million on a trailing twelve month basis. That gives a solid indication that TSO and its cash flows are well managed.