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Marathon Petroleum (MPC) Q1 Earnings: What's in Store?
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Independent oil refiner and marketer Marathon Petroleum Corp. (MPC - Free Report) is set to release its first-quarter 2017 results before the opening bell on Thursday, Apr 27.
In the preceding three-month period, the Findlay, OH-based downstream operator delivered a positive earnings surprise of 72.00% as it overcame a tough commodity price and margin environment on better-than-expected refining and midstream segment performances.
Coming to earnings surprise history, the company has a mixed record: its missed estimates in 2 of the last four quarters, resulting in an average negative surprise of 1.43%.
Marathon Petroleum Corporation Price and EPS Surprise
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
The company is set to benefit from a higher proportion of sour crude oil throughput percentage. Secondly, Marathon Petroleum’s ‘Speedway’ (convenience stores) unit is primed for another strong quarter as healthy merchandize margins continue to drive segment income. And finally, the ‘Pipeline Transportation’ segment – with its stable fee-based income – will provide much needed support to the first quarter results.
However, lower overall throughput volumes due to plant maintenance, increased operating cost – again primarily attributed to plant maintenance, and higher manufacturing cost will drag down results.
Earnings Whispers
Our proven model does not conclusively show that Marathon Petroleum will beat estimates 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) to be able to beat consensus estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%.
Zacks Rank: Marathon Petroleum has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
While earnings beat looks uncertain for Marathon Petroleum, here are some firms from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter:
NOW Inc. (DNOW - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #2. The company is expected to release earnings results on May 3.
Emerge Energy Services L.P. has an Earnings ESP of +14.71% and a Zacks Rank #2. The partnership is anticipated to release earnings on May 3.
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Marathon Petroleum (MPC) Q1 Earnings: What's in Store?
Independent oil refiner and marketer Marathon Petroleum Corp. (MPC - Free Report) is set to release its first-quarter 2017 results before the opening bell on Thursday, Apr 27.
In the preceding three-month period, the Findlay, OH-based downstream operator delivered a positive earnings surprise of 72.00% as it overcame a tough commodity price and margin environment on better-than-expected refining and midstream segment performances.
Coming to earnings surprise history, the company has a mixed record: its missed estimates in 2 of the last four quarters, resulting in an average negative surprise of 1.43%.
Marathon Petroleum Corporation Price and EPS Surprise
Marathon Petroleum Corporation Price and EPS Surprise | Marathon Petroleum Corporation Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
The company is set to benefit from a higher proportion of sour crude oil throughput percentage. Secondly, Marathon Petroleum’s ‘Speedway’ (convenience stores) unit is primed for another strong quarter as healthy merchandize margins continue to drive segment income. And finally, the ‘Pipeline Transportation’ segment – with its stable fee-based income – will provide much needed support to the first quarter results.
However, lower overall throughput volumes due to plant maintenance, increased operating cost – again primarily attributed to plant maintenance, and higher manufacturing cost will drag down results.
Earnings Whispers
Our proven model does not conclusively show that Marathon Petroleum will beat estimates 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) to be able to beat consensus estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%.
Zacks Rank: Marathon Petroleum has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
While earnings beat looks uncertain for Marathon Petroleum, here are some firms from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter:
Tallgrass Energy G.P. L.P. has an Earnings ESP of +5.56% and a Zacks Rank #1. The company is likely to release earnings on May 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NOW Inc. (DNOW - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #2. The company is expected to release earnings results on May 3.
Emerge Energy Services L.P. has an Earnings ESP of +14.71% and a Zacks Rank #2. The partnership is anticipated to release earnings on May 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>