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Sunoco (SUN) Misses Earnings and Revenue Estimates in Q4
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Sunoco LP (SUN - Free Report) reported fourth-quarter 2020 earnings of 77 cents per unit, missing the Zacks Consensus Estimate of 81 cents. The bottom line, however, improved from 75 cents in the year-ago quarter.
Quarterly revenues of the partnership totaled $2,553 million, missing the Zacks Consensus Estimate of $2,772 million. Moreover, the figure declined from $4,098 million a year ago.
The lower-than-expected quarterly results were owing to reduced contributions from the fuel distribution and marketing business.
The partnership reports financial statements through two reportable segments — Fuel Distribution and Marketing, and All Other.
Fuel Distribution and Marketing: Total gross profit from the segment increased to $249 million from $243 million in the comparable period of 2019, primarily due to higher margin from motor fuel sales.
All Other: This unit reported gross profit of $33 million compared with $42 million in the comparable period of 2019. The year-over-year decline can be attributed to lower margins from non-motor fuel sales and motor fuel sales.
In terms of volumes, the partnership sold 1.8 billion gallons of fuel in the reported quarter, down 12.4% year over year owing to the coronavirus pandemic. Notably, motor fuel gross profit per gallon was recorded at 9.2 cents in the quarter versus the year-ago level of 9.9 cents.
Distribution
For the quarter ended Dec 31, 2020, Sunoco declared a quarterly cash distribution of 82.55 cents per unit or $3.3020 on an annualized basis. Markedly, this distribution was flat on a sequential basis.
Adjusted distributable cash flow was $97 million in the fourth quarter, showing a decline from the year-ago quarter’s $120 million.
Expenses & Capital Expenditure
Total cost of sales and operating expenses in the reported quarter decreased to $2,409 million from $4,000 million a year ago.
The partnership incurred gross capital expenditure of $45 million in the quarter under review, comprising $25 million in growth capital and $20 million of maintenance capital.
Balance Sheet
As of Dec 31, 2020, Sunoco had cash and cash equivalents of $97 million. At fourth quarter-end, it had net long-term debt of $3,106 million, representing a debt-to-capitalization ratio of 0.83.
Zacks Rank & Key Picks
Sunococurrently carries a Zacks Rank #4 (Sell). Meanwhile, some better-ranked players in the energy space include Matador Resources Company (MTDR - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . While Diamondback carries a Zacks Rank #2 (Buy), Matadorand Pioneer Naturalsport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador is likely to see earnings growth of 201.3% in 2021.
Pioneer Natural has seen upward estimate revisions for 2021 earnings in the past 30 days.
Diamondback is likely to see earnings growth of 55% in 2021.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Sunoco (SUN) Misses Earnings and Revenue Estimates in Q4
Sunoco LP (SUN - Free Report) reported fourth-quarter 2020 earnings of 77 cents per unit, missing the Zacks Consensus Estimate of 81 cents. The bottom line, however, improved from 75 cents in the year-ago quarter.
Quarterly revenues of the partnership totaled $2,553 million, missing the Zacks Consensus Estimate of $2,772 million. Moreover, the figure declined from $4,098 million a year ago.
The lower-than-expected quarterly results were owing to reduced contributions from the fuel distribution and marketing business.
Sunoco LP Price, Consensus and EPS Surprise
Sunoco LP price-consensus-eps-surprise-chart | Sunoco LP Quote
Segmental Performance
The partnership reports financial statements through two reportable segments — Fuel Distribution and Marketing, and All Other.
Fuel Distribution and Marketing: Total gross profit from the segment increased to $249 million from $243 million in the comparable period of 2019, primarily due to higher margin from motor fuel sales.
All Other: This unit reported gross profit of $33 million compared with $42 million in the comparable period of 2019. The year-over-year decline can be attributed to lower margins from non-motor fuel sales and motor fuel sales.
In terms of volumes, the partnership sold 1.8 billion gallons of fuel in the reported quarter, down 12.4% year over year owing to the coronavirus pandemic. Notably, motor fuel gross profit per gallon was recorded at 9.2 cents in the quarter versus the year-ago level of 9.9 cents.
Distribution
For the quarter ended Dec 31, 2020, Sunoco declared a quarterly cash distribution of 82.55 cents per unit or $3.3020 on an annualized basis. Markedly, this distribution was flat on a sequential basis.
Adjusted distributable cash flow was $97 million in the fourth quarter, showing a decline from the year-ago quarter’s $120 million.
Expenses & Capital Expenditure
Total cost of sales and operating expenses in the reported quarter decreased to $2,409 million from $4,000 million a year ago.
The partnership incurred gross capital expenditure of $45 million in the quarter under review, comprising $25 million in growth capital and $20 million of maintenance capital.
Balance Sheet
As of Dec 31, 2020, Sunoco had cash and cash equivalents of $97 million. At fourth quarter-end, it had net long-term debt of $3,106 million, representing a debt-to-capitalization ratio of 0.83.
Zacks Rank & Key Picks
Sunococurrently carries a Zacks Rank #4 (Sell). Meanwhile, some better-ranked players in the energy space include Matador Resources Company (MTDR - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . While Diamondback carries a Zacks Rank #2 (Buy), Matadorand Pioneer Naturalsport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador is likely to see earnings growth of 201.3% in 2021.
Pioneer Natural has seen upward estimate revisions for 2021 earnings in the past 30 days.
Diamondback is likely to see earnings growth of 55% in 2021.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>