Have you been eager to see how Marathon Petroleum (MPC - Free Report) – a leading downstream operator – performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Findlay, OH-based company’s earnings release this morning:
About Marathon Petroleum: Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company operates in three segments: Refining and Marketing, Speedway (Retail), and Pipeline Transportation.
Zacks Rank & Surprise History: Currently, Marathon Petroleum has a Zacks Rank #3 (Hold) but that could change following its first quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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%.
We have highlighted some of the key details from the just-released announcement below:
Earnings Crush Loss Estimate: Earnings per share came in at 6 cents, contrary to the Zacks Consensus Estimate for a loss of a penny. Solid operational performance from its ‘Midstream’ unit led to the underperformance.
Revenue Came in Lower than Expected: Marathon Petroleum posted revenues of $16,393 million, missing the Zacks Consensus Estimate of $19,030.9 million. However, revenues rose 28% on a year-over-year basis.
Key Stats: Operating loss from the Refining & Marketing segment – which is the main contributor to Marathon Petroleum earnings – was $70 million compared with a loss of $86 million in the year-ago quarter. The improvement reflects higher gross margin.
Total refined product sales volumes were 2,085 thousand barrels per day (mbpd), down 3% from the 2,158 mbpd in the year-ago quarter. Moreover, throughput deteriorated from 1,774 mbpd in the year-ago quarter to 1,708 mbpd.
Income from the Speedway retail stations totaled $135 million, 19% lower than the $167 million earned in the year-ago period. Fall in merchandise margins hampered the results.
Finally, Midstream segment profitability was $309 million, up significantly from $189 million in the first quarter of 2016. Earnings were buoyed by new pipeline and marine equity investments as well as increased processing and fractionation activity.
Share Performance: Marathon Petroleum shares have risen 16% over the past 6 months, while the Zacks categorized Oil Refining & Marketing industry has gained just 1%.
Check back later for our full write up on this Marathon Petroleum earnings report later!
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Have you been eager to see how Marathon Petroleum (MPC - Free Report) – a leading downstream operator – performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Findlay, OH-based company’s earnings release this morning:
About Marathon Petroleum: Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company operates in three segments: Refining and Marketing, Speedway (Retail), and Pipeline Transportation.
Zacks Rank & Surprise History: Currently, Marathon Petroleum has a Zacks Rank #3 (Hold) but that could change following its first quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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%.
We have highlighted some of the key details from the just-released announcement below:
Earnings Crush Loss Estimate: Earnings per share came in at 6 cents, contrary to the Zacks Consensus Estimate for a loss of a penny. Solid operational performance from its ‘Midstream’ unit led to the underperformance.
Revenue Came in Lower than Expected: Marathon Petroleum posted revenues of $16,393 million, missing the Zacks Consensus Estimate of $19,030.9 million. However, revenues rose 28% on a year-over-year basis.
Key Stats: Operating loss from the Refining & Marketing segment – which is the main contributor to Marathon Petroleum earnings – was $70 million compared with a loss of $86 million in the year-ago quarter. The improvement reflects higher gross margin.
Total refined product sales volumes were 2,085 thousand barrels per day (mbpd), down 3% from the 2,158 mbpd in the year-ago quarter. Moreover, throughput deteriorated from 1,774 mbpd in the year-ago quarter to 1,708 mbpd.
Income from the Speedway retail stations totaled $135 million, 19% lower than the $167 million earned in the year-ago period. Fall in merchandise margins hampered the results.
Finally, Midstream segment profitability was $309 million, up significantly from $189 million in the first quarter of 2016. Earnings were buoyed by new pipeline and marine equity investments as well as increased processing and fractionation activity.
Share Performance: Marathon Petroleum shares have risen 16% over the past 6 months, while the Zacks categorized Oil Refining & Marketing industry has gained just 1%.
Check back later for our full write up on this Marathon Petroleum earnings report later!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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