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HF Sinclair (DINO) Q4 Preview: What Investors Can Expect
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HF Sinclair Corporation (DINO - Free Report) is set to release fourth-quarter results on Feb 24. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.59 per share on revenues of $7.6 billion.
Let’s delve into the factors that might have influenced this independent U.S. refiner’s results in the December quarter. But it’s worth taking a look at DINO’s previous-quarter performance first
Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, the Dallas, TX-based downstream operator eased past the consensus mark on strong margins and solid execution. DINO had reported adjusted earnings per share of $4.58, significantly above the Zacks Consensus Estimate of $4.20. Revenues of $10.6 billion generated by the firm also came in above the Zacks Consensus Estimate by 25.2%.
HF Sinclair beat the Zacks Consensus Estimate for earnings in three of the last four quarters, resulting in an earnings surprise of 695.8%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a massive 3,363.6% surge year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 35.6% increase from the year-ago period.
Factors to Consider
DINO is expected to have benefited from the strength in refining margins. In the third quarter of 2022, the company’s refining gross margin of $31.47 per barrel jumped from $14.87 a year ago. Moreover, throughput rose from 444,730 barrels per day (bpd) in the third quarter of 2021 to 685,120 bpd.
Despite softening from the spectacular highs of the June quarter, the overall positive momentum is most likely to have continued in the fourth quarter, thanks to the strength in fuel demand on the back of rebounding road and airline travel, which pushed up crude differentials and margins. Consequently, the Zacks Consensus Estimate for HF Sinclair’s Refining segment operating income is pegged at $895 million, turning around from the prior-year quarter’s loss of $63 million. This is likely to have buoyed the fourth-quarter results of HF Sinclair.
On a somewhat bearish note, though, HF Sinclair’s total operating costs and expenses in the third quarter more than doubled year over year to $9.3 billion. The upward cost trajectory is likely to have continued in the to-be-reported period due to the prevailing inflationary environment.
What Does Our Model Say?
The proven Zacks model does not conclusively show that HF Sinclair is likely to beat estimates in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: DINO has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.59 per share each.
Zacks Rank: HF Sinclair currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for HF Sinclair, here are some firms that you may want to consider on the basis of our model:
International Game Technology PLC (IGT - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 28.
For 2022, International Game Technology has a projected earnings growth rate of 609.7%. Valued at around $5.3 billion, IGT has lost 10.4% in a year.
Occidental Petroleum (OXY - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 27.
For 2022, Occidental Petroleum has a projected earnings growth rate of 276.5%. Valued at around $55.2 billion, OXY has gained 54.6% in a year.
Allogene Therapeutics, Inc. (ALLO - Free Report) has an Earnings ESP of +25.70% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 28.
Allogene Therapeutics beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 9.4%, on average. Valued at around $963.3 million, ALLO has lost 27.3% in a year.
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HF Sinclair (DINO) Q4 Preview: What Investors Can Expect
HF Sinclair Corporation (DINO - Free Report) is set to release fourth-quarter results on Feb 24. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.59 per share on revenues of $7.6 billion.
Let’s delve into the factors that might have influenced this independent U.S. refiner’s results in the December quarter. But it’s worth taking a look at DINO’s previous-quarter performance first
Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, the Dallas, TX-based downstream operator eased past the consensus mark on strong margins and solid execution. DINO had reported adjusted earnings per share of $4.58, significantly above the Zacks Consensus Estimate of $4.20. Revenues of $10.6 billion generated by the firm also came in above the Zacks Consensus Estimate by 25.2%.
HF Sinclair beat the Zacks Consensus Estimate for earnings in three of the last four quarters, resulting in an earnings surprise of 695.8%, on average. This is depicted in the graph below:
HF Sinclair Corporation Price and EPS Surprise
HF Sinclair Corporation price-eps-surprise | HF Sinclair Corporation Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a massive 3,363.6% surge year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 35.6% increase from the year-ago period.
Factors to Consider
DINO is expected to have benefited from the strength in refining margins. In the third quarter of 2022, the company’s refining gross margin of $31.47 per barrel jumped from $14.87 a year ago. Moreover, throughput rose from 444,730 barrels per day (bpd) in the third quarter of 2021 to 685,120 bpd.
Despite softening from the spectacular highs of the June quarter, the overall positive momentum is most likely to have continued in the fourth quarter, thanks to the strength in fuel demand on the back of rebounding road and airline travel, which pushed up crude differentials and margins. Consequently, the Zacks Consensus Estimate for HF Sinclair’s Refining segment operating income is pegged at $895 million, turning around from the prior-year quarter’s loss of $63 million. This is likely to have buoyed the fourth-quarter results of HF Sinclair.
On a somewhat bearish note, though, HF Sinclair’s total operating costs and expenses in the third quarter more than doubled year over year to $9.3 billion. The upward cost trajectory is likely to have continued in the to-be-reported period due to the prevailing inflationary environment.
What Does Our Model Say?
The proven Zacks model does not conclusively show that HF Sinclair is likely to beat estimates in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: DINO has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.59 per share each.
Zacks Rank: HF Sinclair currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for HF Sinclair, here are some firms that you may want to consider on the basis of our model:
International Game Technology PLC (IGT - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 28.
You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, International Game Technology has a projected earnings growth rate of 609.7%. Valued at around $5.3 billion, IGT has lost 10.4% in a year.
Occidental Petroleum (OXY - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 27.
For 2022, Occidental Petroleum has a projected earnings growth rate of 276.5%. Valued at around $55.2 billion, OXY has gained 54.6% in a year.
Allogene Therapeutics, Inc. (ALLO - Free Report) has an Earnings ESP of +25.70% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 28.
Allogene Therapeutics beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 9.4%, on average. Valued at around $963.3 million, ALLO has lost 27.3% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.