We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Lower Production Affect PBF Energy's (PBF) Q4 Earnings?
Read MoreHide Full Article
PBF Energy Inc. (PBF - Free Report) is set to report fourth-quarter 2020 results on Feb 11, before the opening bell.
In the last reported quarter, the company’s loss amounted to $2.87 per share, wider than the Zacks Consensus Estimate of a loss of $2.57. The underperformance was caused by lower crude oil and feedstock throughput volumes, decreased gross refining margin, as well as increased refinery operating expense.
The refining and marketing company beat the Zacks Consensus Estimate only once in the prior four quarters and missed the same on other occasions, delivering an average negative earnings surprise of 1.5%. This is depicted in the graph below:
Let’s see how things have shaped up prior to the announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter loss of $3.41 per share has seen no upward movement but 11 downward revisions in the past 30 days. The estimated figure suggests a year-over-year decrease of 668.3%.
Further, the Zacks Consensus Estimate for revenues is pegged at $3.5 billion for the quarter, indicating a decline of 44.1% from the year-ago reported figure.
Fourth-Quarter Estimates
The Zacks Consensus Estimate for fourth-quarter crude oil and feedstocks throughput of PBF Energy — which has one of the most complex refining systems in the United States — is pegged at 720 thousand barrels per day (Mbpd), indicating a decline from 843 Mbpd in the year-ago period owing to the coronavirus pandemic.
Moreover, the consensus estimate for the downstream company’s total production is pegged at 735 Mbpd, which indicates a decrease from 852.1 Mbpd in fourth-quarter 2019. As such, the Zacks Consensus Estimate for refining loss is pegged at $349 million. It recorded a year-ago profit of $184.9 million.
However, the consensus estimate for operating profits from logistics is pegged at $48.1 million, indicating a rise from the year-ago level of $42.9 million. This potential increase may have partially offset the negatives in the fourth quarter.
What the Quantitative Model Suggests
Our proven model does not conclusively predict an earnings beat for PBF Energy 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. That is not the case here as you will see below.
Earnings ESP: PBF Energy has an Earnings ESP of -2.53%. This is because the Most Accurate Estimate for the quarter is currently pegged at a loss of $3.50, wider than the Zacks Consensus Estimate of a loss of $3.41 per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: PBF Energy currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +4.83% and is a Zacks #2 Ranked player. The company is scheduled to release fourth-quarter results on Feb 25.
Continental Resources, Inc. has an Earnings ESP of +17.97% and a Zacks Rank of 2. It is scheduled to report fourth-quarter results on Feb 16.
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 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Shutterstock
Will Lower Production Affect PBF Energy's (PBF) Q4 Earnings?
PBF Energy Inc. (PBF - Free Report) is set to report fourth-quarter 2020 results on Feb 11, before the opening bell.
In the last reported quarter, the company’s loss amounted to $2.87 per share, wider than the Zacks Consensus Estimate of a loss of $2.57. The underperformance was caused by lower crude oil and feedstock throughput volumes, decreased gross refining margin, as well as increased refinery operating expense.
The refining and marketing company beat the Zacks Consensus Estimate only once in the prior four quarters and missed the same on other occasions, delivering an average negative earnings surprise of 1.5%. This is depicted in the graph below:
PBF Energy Inc. Price and EPS Surprise
PBF Energy Inc. price-eps-surprise | PBF Energy Inc. Quote
Let’s see how things have shaped up prior to the announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter loss of $3.41 per share has seen no upward movement but 11 downward revisions in the past 30 days. The estimated figure suggests a year-over-year decrease of 668.3%.
Further, the Zacks Consensus Estimate for revenues is pegged at $3.5 billion for the quarter, indicating a decline of 44.1% from the year-ago reported figure.
Fourth-Quarter Estimates
The Zacks Consensus Estimate for fourth-quarter crude oil and feedstocks throughput of PBF Energy — which has one of the most complex refining systems in the United States — is pegged at 720 thousand barrels per day (Mbpd), indicating a decline from 843 Mbpd in the year-ago period owing to the coronavirus pandemic.
Moreover, the consensus estimate for the downstream company’s total production is pegged at 735 Mbpd, which indicates a decrease from 852.1 Mbpd in fourth-quarter 2019. As such, the Zacks Consensus Estimate for refining loss is pegged at $349 million. It recorded a year-ago profit of $184.9 million.
However, the consensus estimate for operating profits from logistics is pegged at $48.1 million, indicating a rise from the year-ago level of $42.9 million. This potential increase may have partially offset the negatives in the fourth quarter.
What the Quantitative Model Suggests
Our proven model does not conclusively predict an earnings beat for PBF Energy 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. That is not the case here as you will see below.
Earnings ESP: PBF Energy has an Earnings ESP of -2.53%. This is because the Most Accurate Estimate for the quarter is currently pegged at a loss of $3.50, wider than the Zacks Consensus Estimate of a loss of $3.41 per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: PBF Energy currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +8.58% and a Zacks Rank #2, currently. The company is scheduled to release quarterly earnings on Feb 22. You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +4.83% and is a Zacks #2 Ranked player. The company is scheduled to release fourth-quarter results on Feb 25.
Continental Resources, Inc. has an Earnings ESP of +17.97% and a Zacks Rank of 2. It is scheduled to report fourth-quarter results on Feb 16.
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 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>