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Phillips 66 (PSX - Free Report) posted adjusted third-quarter 2017 earnings of $1.66 per share that beat the Zacks Consensus Estimate of $1.62. The bottom line also increased from $1.05 in the year-ago quarter. The growth came on the back of higher contribution from the Refining segment.
Quarterly revenues of $26,206 million lagged the Zacks Consensus Estimate of $29,945 million. Revenues also declined from the year-ago quarter’s level of $22,042 million.
Segmental Results
Midstream
The segment generated adjusted quarterly earnings of $67 million compared with $75 million in the year-ago quarter. The decline is mainly attributable to adverse impacts of natural calamities.
Chemicals
The segment reported adjusted earnings of $153 million as against $190 million in the year-earlier quarter. Lower margins and volume led to the drop.
Refining
The segment’s adjusted earnings were $548 million compared with earnings of $134 million in the prior-year quarter. Higher distillate and gasoline margins led to the growth. During the quarter, Phillips 66’s refining utilization was 98% and clean product yield was 85%.
Marketing and Specialties (M&S)
This segment reported adjusted earnings of $211 million compared with $267 million in the year-ago quarter.
Financial Condition
In the reported quarter, Phillips 66 generated $401 million of cash from operations. It also returned capital worth $817 million to shareholders. Of this, $356 million was disbursed as dividends, while $461 million was utilized to repurchase common stock.
As of Sep 30, 2017, the company had cash and cash equivalents of $1,547 million and debt of $10,201 million. The company’s debt-to-capitalization ratio was 30%.
Capital Expenditure Guidance
Phillips 66 has lowered its capital expenditures for 2017 to $2 billion from $2.7 billion. Postponement of a final investment decision relating to incremental fractionation capacity is mainly responsible for the reduction. For 2018, capital expenditure is expected between $2 billion and $3 billion.
Q3 Price Performance
The pricing chart reveals that the company’s shares have outperformed the industry in the last three months. During this period, the company’s shares have returned 10.7%, compared with the industry’s rally of 10.5%.
Zacks Rank
Currently, Phillips 66 carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Canadian Natural Resources Limited (CNQ - Free Report) , Braskem SA (BAK - Free Report) and Noble Midstream Partners LP . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian Natural Resources, based in Austin, TX, is an independent oil and gas company. The company delivered earnings surprise of 22.22% in the preceding quarter.
The largest petrochemical operator in Latin America, Braskem, delivered an average positive earnings surprise of 88.17% in the last four quarters.
Noble Midstream Partners, headquartered in Houston, TX, has diversified energy infrastructure properties. The company delivered positive earnings surprise of 30.67% in the preceding quarter.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Phillips 66 (PSX) Q3 Earnings Beat Estimates, Increase Y/Y
Phillips 66 (PSX - Free Report) posted adjusted third-quarter 2017 earnings of $1.66 per share that beat the Zacks Consensus Estimate of $1.62. The bottom line also increased from $1.05 in the year-ago quarter. The growth came on the back of higher contribution from the Refining segment.
Quarterly revenues of $26,206 million lagged the Zacks Consensus Estimate of $29,945 million. Revenues also declined from the year-ago quarter’s level of $22,042 million.
Segmental Results
Midstream
The segment generated adjusted quarterly earnings of $67 million compared with $75 million in the year-ago quarter. The decline is mainly attributable to adverse impacts of natural calamities.
Chemicals
The segment reported adjusted earnings of $153 million as against $190 million in the year-earlier quarter. Lower margins and volume led to the drop.
Refining
The segment’s adjusted earnings were $548 million compared with earnings of $134 million in the prior-year quarter. Higher distillate and gasoline margins led to the growth. During the quarter, Phillips 66’s refining utilization was 98% and clean product yield was 85%.
Marketing and Specialties (M&S)
This segment reported adjusted earnings of $211 million compared with $267 million in the year-ago quarter.
Financial Condition
In the reported quarter, Phillips 66 generated $401 million of cash from operations. It also returned capital worth $817 million to shareholders. Of this, $356 million was disbursed as dividends, while $461 million was utilized to repurchase common stock.
As of Sep 30, 2017, the company had cash and cash equivalents of $1,547 million and debt of $10,201 million. The company’s debt-to-capitalization ratio was 30%.
Capital Expenditure Guidance
Phillips 66 has lowered its capital expenditures for 2017 to $2 billion from $2.7 billion. Postponement of a final investment decision relating to incremental fractionation capacity is mainly responsible for the reduction. For 2018, capital expenditure is expected between $2 billion and $3 billion.
Q3 Price Performance
The pricing chart reveals that the company’s shares have outperformed the industry in the last three months. During this period, the company’s shares have returned 10.7%, compared with the industry’s rally of 10.5%.
Zacks Rank
Currently, Phillips 66 carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Canadian Natural Resources Limited (CNQ - Free Report) , Braskem SA (BAK - Free Report) and Noble Midstream Partners LP . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian Natural Resources, based in Austin, TX, is an independent oil and gas company. The company delivered earnings surprise of 22.22% in the preceding quarter.
The largest petrochemical operator in Latin America, Braskem, delivered an average positive earnings surprise of 88.17% in the last four quarters.
Noble Midstream Partners, headquartered in Houston, TX, has diversified energy infrastructure properties. The company delivered positive earnings surprise of 30.67% in the preceding quarter.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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