Murphy USA Inc. MUSA reported better-than-expected results in the fourth quarter of 2018 on the back of higher retail margins. The company’s adjusted net income per share came in at $2.38, topping the Zacks Consensus Estimate of $2.30. Further, the bottom line improved from the year-ago figure of $1.03 per share. Murphy USA’s operating revenues of $3,501.6 million surpassed the Zacks Consensus Estimate of $3,497 million. Moreover, the top line increased around 4% from the year-ago figure of $3,379.5 million. Revenues from petroleum product sales came in at $2,875.6 million.Murphy USA Inc. Price, Consensus and EPS Surprise Murphy USA Inc. Price, Consensus and EPS Surprise | Murphy USA Inc. QuoteKey TakeawaysThe company’s total fuel contribution was up 26.9% year over year to $218.1 million, primarily driven by higher retail fuel margins. Retail fuel contribution jumped around 73% year over year to $248.7 million amid higher margins, which increased 65.2% from the prior-year quarter. Retail gallons rose 4.8% from the year-ago periodto 1,088.8 billion gallons in the quarter under review. Volumes on a same-store sales (SSS) basis also rose 2.1% from the fourth quarter of 2017.Contribution from Merchandise increased 5.2% to $102 million on higher unit margins, which increased to 16.6% from 16.3% a year ago. On SSS basis, total merchandise contribution was up 2.6% year over year in the quarter under review on the back of higher tobacco and non-tobacco margins that increased 2.1% and 5.6%, respectively. Fuel gallons rose 2.9% and merchandise sales increased 1.5% on average per store month (or APSM) basis. Fuel gallons per month rose 2.1% and merchandise sales increased 1.3% on SSS basis. Balance Sheet As of Dec 31, Murphy USA — whose peers include Delek US Holdings, Inc. DK, HollyFrontier Corporation HFC and Marathon Petroleum Corporation MPC — had cash and cash equivalents of $184.5 million, and long-term debt (including lease obligations) of $842.1 million, with a debt-to-capitalization ratio of 51.2%. Guidance Murphy USA expects 2019 capex in the band of $225-$275 million versus $194 million incurred in 2018. The Zacks Rank #2 (Buy) company projects adjusted EBITDA of $405 million in 2019. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks' Top 10 Stocks for 2019 In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year? Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%. See Latest Stocks Today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Murphy USA Inc. (MUSA): Free Stock Analysis Report HollyFrontier Corporation (HFC): Get Free Report Marathon Petroleum Corporation (MPC): Get Free Report Delek US Holdings, Inc. (DK): Get Free Report To read this article on Zacks.com click here.