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Marathon Petroleum (MPC) Q4 Earnings: What's in Store?
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Independent oil refiner and marketer Marathon Petroleum Corp. (MPC - Free Report) is set to release fourth-quarter 2016 results before the opening bell on Feb 1.
In the last reported quarter, the company lagged the Zacks Consensus Estimate due to lower refining margins. Moreover, Marathon Petroleum had an average negative earnings surprise of 14.95% in the last four quarters.
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
After the historic deal by OPEC to curb crude production, oil started recovering in the last month of the fourth quarter. The development on this front, however, was unfavorable for refiners as their input cost started rising.
Moreover, Marathon Petroleum remains exposed to the Brent-WTI spread, which was negative over a considerable portion of the fourth quarter. This may hurt the company’s margin.
Also, the majority of brokerage firms (six out of seven) remain bearish on Marathon Petroleum’s earnings. This is evidenced by the downward revision of the Zacks Consensus Estimate for fourth-quarter earnings over the past 30 days.
Despite these negatives, the Findlay, OH-based refiner displayed significant pricing strength in the last three months. During the aforesaid period, shares of the company gained 15.5% as against 11.5% improvement for the Zacks categorized Oil Refining & Marketing industry.
Earnings Whispers
Our proven model does not conclusively show that Marathon Petroleum is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Marathon Petroleum is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:Marathon Petroleum carries a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (Zacks Ranks #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Marathon Petroleum Corporation Price and EPS Surprise
Summit Midstream Partners, L.P. (SMLP - Free Report) has an Earnings ESP of +76.47% and a Zacks Rank #3.
Plains All American Pipeline, L.P. (PAA - Free Report) has an Earnings ESP of +26.53% and a Zacks Rank #2.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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Marathon Petroleum (MPC) Q4 Earnings: What's in Store?
Independent oil refiner and marketer Marathon Petroleum Corp. (MPC - Free Report) is set to release fourth-quarter 2016 results before the opening bell on Feb 1.
In the last reported quarter, the company lagged the Zacks Consensus Estimate due to lower refining margins. Moreover, Marathon Petroleum had an average negative earnings surprise of 14.95% in the last four quarters.
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
After the historic deal by OPEC to curb crude production, oil started recovering in the last month of the fourth quarter. The development on this front, however, was unfavorable for refiners as their input cost started rising.
Moreover, Marathon Petroleum remains exposed to the Brent-WTI spread, which was negative over a considerable portion of the fourth quarter. This may hurt the company’s margin.
Also, the majority of brokerage firms (six out of seven) remain bearish on Marathon Petroleum’s earnings. This is evidenced by the downward revision of the Zacks Consensus Estimate for fourth-quarter earnings over the past 30 days.
Despite these negatives, the Findlay, OH-based refiner displayed significant pricing strength in the last three months. During the aforesaid period, shares of the company gained 15.5% as against 11.5% improvement for the Zacks categorized Oil Refining & Marketing industry.
Earnings Whispers
Our proven model does not conclusively show that Marathon Petroleum is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Marathon Petroleum is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:Marathon Petroleum carries a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (Zacks Ranks #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Marathon Petroleum Corporation Price and EPS Surprise
Marathon Petroleum Corporation Price and EPS Surprise | Marathon Petroleum Corporation Quote
Stocks to Consider
Here are some companies to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Enable Midstream Partners LP has an Earnings ESP of +11.77% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Summit Midstream Partners, L.P. (SMLP - Free Report) has an Earnings ESP of +76.47% and a Zacks Rank #3.
Plains All American Pipeline, L.P. (PAA - Free Report) has an Earnings ESP of +26.53% and a Zacks Rank #2.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>