Have you been eager to see how Marathon Petroleum (MPC - Free Report) – a leading downstream operator – performed in Q2 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 second 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 good record: it’s gone past estimates in 3 of the last four quarters resulting in an average positive surprise of 189.75%.
We have highlighted some of the key details from the just-released announcement below:
Earnings Miss Estimate: Earnings per share (adjusted for special items) came in at $1.03, missing the Zacks Consensus Estimate of $1.04. Lower margins and increased costs led to the underperformance.
Revenue Came in Lower than Expected: Marathon Petroleum posted revenues of $18,354 million, missing the Zacks Consensus Estimate of $19,361 million. However, revenues rose 9% year-over-year.
Total Costs: Total costs and expenses came in at $17,326 million, up 12% year-over-year.
Key Stats: Operating income from the Refining & Marketing segment – which is the main contributor to Marathon Petroleum earnings – was $562 million compared with $1,025 million in the year-ago quarter. The deterioration reflects narrower gross margin.
Total refined product sales volumes were 2,370 thousand barrels per day (mbpd), up 1% from the 2,348 mbpd in the year-ago quarter. Moreover, throughput improved from 1,889 mbpd in the year-ago quarter to 2,023 mbpd.
Income from the Speedway retail stations totaled $239 million, 24% higher than the $193 million earned in the year-ago period. Rise in merchandise margins, lower operating costs and increased light product margin benefited the results.
Finally, Midstream segment profitability was $332 million, up from $253 million in the second quarter of 2016. Earnings were buoyed by contributions from the recently acquired Oklahoma-to-Illinois Ozark pipeline system, better returns from pipeline equity investments as well as increased NGL processing and fractionation activity.
Share Performance: Shares of Marathon Petroleum have gained 3.5% during the second quarter, underperforming the industry’s 4.7% increase.
Check back later for our full write up on this Marathon Petroleum earnings report later!
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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.
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Have you been eager to see how Marathon Petroleum (MPC - Free Report) – a leading downstream operator – performed in Q2 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 second 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 good record: it’s gone past estimates in 3 of the last four quarters resulting in an average positive surprise of 189.75%.
We have highlighted some of the key details from the just-released announcement below:
Earnings Miss Estimate: Earnings per share (adjusted for special items) came in at $1.03, missing the Zacks Consensus Estimate of $1.04. Lower margins and increased costs led to the underperformance.
Revenue Came in Lower than Expected: Marathon Petroleum posted revenues of $18,354 million, missing the Zacks Consensus Estimate of $19,361 million. However, revenues rose 9% year-over-year.
Total Costs: Total costs and expenses came in at $17,326 million, up 12% year-over-year.
Key Stats: Operating income from the Refining & Marketing segment – which is the main contributor to Marathon Petroleum earnings – was $562 million compared with $1,025 million in the year-ago quarter. The deterioration reflects narrower gross margin.
Total refined product sales volumes were 2,370 thousand barrels per day (mbpd), up 1% from the 2,348 mbpd in the year-ago quarter. Moreover, throughput improved from 1,889 mbpd in the year-ago quarter to 2,023 mbpd.
Income from the Speedway retail stations totaled $239 million, 24% higher than the $193 million earned in the year-ago period. Rise in merchandise margins, lower operating costs and increased light product margin benefited the results.
Finally, Midstream segment profitability was $332 million, up from $253 million in the second quarter of 2016. Earnings were buoyed by contributions from the recently acquired Oklahoma-to-Illinois Ozark pipeline system, better returns from pipeline equity investments as well as increased NGL processing and fractionation activity.
Share Performance: Shares of Marathon Petroleum have gained 3.5% during the second quarter, underperforming the industry’s 4.7% increase.
Check back later for our full write up on this Marathon Petroleum earnings report later!
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future. Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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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