A month has gone by since the last earnings report for Sunoco LP (SUN Quick QuoteSUN - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Sunoco LP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Sunoco Q2 Earnings Beat Estimates

Sunoco reported second-quarter earnings of $1.20 per unit, comfortably beating the Zacks Consensus Estimate of $1.14. The bottom line significantly decreased from the year-ago quarter’s $1.73 per unit.

Total quarterly revenues of $7,815 million surpassed the Zacks Consensus Estimate of $6,472 million. The top line also increased from $4,392 million a year ago.

The better-than-expected quarterly results were driven by higher motor fuel and non-motor fuel sales.

Segmental Performance

Sunoco reports financial results through two reportable segments — Fuel Distribution and Marketing, and All Other.

Fuel Distribution and Marketing: Adjusted EBITDA from the segment increased to $200 million from $191 million in the comparable period of 2021, primarily due to higher motor fuel sales.

All Other: The unit reported an adjusted EBITDA of $14 million versus $10 million in the comparable period of 2021. The year-over-year increase can be attributed to higher non-motor and motor fuel sales.

In terms of volumes, the partnership sold 1,985 million gallons of fuel in the reported quarter, up year over year. Motor fuel gross profit per gallon was 12.3 cents versus the year-ago level of 11.3 cents.

Distributable Cash Flow

Adjusted distributable cash flow was $159 million in the second quarter, reflecting an increase from the year-ago quarter’s $145 million.

Expenses & Capital Expenditure

The total cost of sales and operating expenses in the reported quarter surged to $7,642 million from $4,176 million a year ago.

The partnership incurred a capital expenditure of $29 million in the reported quarter, comprising $24 million in growth capital and $5 million in maintenance capital.

Balance Sheet

As of Jun 30, 2022, Sunoco had cash and cash equivalents of $168 million. At the second-quarter end, it had net long-term debt of $2,669 million.

Guidance

For 2022, Sunoco announced the reaffirmation of its adjusted EBITDA guidance at $795-$835 million.  The partnership expects maintenance and growth capex of $50 million and $150 million, respectively, for the year.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

Currently, Sunoco LP has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Sunoco LP has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.