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Delek Logistics (DKL) to Post Q2 Earnings: What's in Store?

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Delek Logistics Partners, LP (DKL - Free Report) is scheduled to release second-quarter 2020 results on Aug 4, after market close. In the last reported quarter, the firm delivered an earnings surprise of 28.8%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Amid the unprecedented economic crisis caused by the novel coronavirus outbreak and a subsequent drop in demand, Delek Logistics is likely to have benefited from contracts with minimum volume commitments. This in turn is expected to have contributed to second-quarter gross margin, similar to the first quarter.

During the quarter, the firm acquired certain trucking assets from Delek US Holdings, Inc. that are expected to be immediately accretive to Delek Logistics’ distributable cash flow per unit.

Expectations

The Zacks Consensus Estimate for second-quarter earnings per unit is pegged at 93 cents, which indicates an increase of 34.8% from the year-ago reported figure. The same for sales stands at $176.4 billion, suggesting a 13.6% increase from the year-earlier reported number.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Delek Logistics Partners this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: It has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Delek Logistics carries a Zacks Rank #1.

Stocks to Consider

Investors can consider some players from the same sector that have the right combination of elements to beat on earnings this season.

MPLX LP (MPLX - Free Report) is scheduled to release second-quarter 2020 numbers on Aug 3. It has an Earnings ESP of +3.73% and a Zacks Rank #3, currently.

Plains All American Pipeline, L.P. (PAA - Free Report) is slated to release second-quarter 2020 numbers on Aug 4. It has an Earnings ESP of +12.92% and a Zacks Rank of 3, at present.

Rattler Midstream LP is set to release second-quarter earnings on Aug 5. It has an Earnings ESP of +4.50% and a Zacks Rank #3, at present.

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Delek Logistics Partners, L.P. (DKL) - free report >>

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