Back to top

Image: Bigstock

HF Sinclair Q4 Preview: Another Beat Inbound?

Read MoreHide Full Article

Earnings season continues to chug along, with a wide variety of companies reporting daily.

We’re well into the season now, but there still remains a large number of companies yet to report.

One such company, HF Sinclair (DINO - Free Report) , is slated to unveil its Q4 results on February 24th, before the market open.

HF Sinclair is a diversified, innovative energy company that manufactures and sells products such as gasoline, diesel fuel, jet fuel, renewable diesel, and others.

How does the company stack up heading into its release? We can use results from Marathon Petroleum (MPC - Free Report) as a small gauge. Let’s take a closer look.

Marathon Petroleum Q4

Marathon Petroleum posted better-than-expected quarterly results, reporting EPS of $6.65 and reflecting a sizable 410% year-over-year uptick. The reported figure handily beat the Zacks Consensus EPS Estimate by more than 20%.

Quarterly revenue totaled $40.1 billion, 25% above expectations and climbing nearly 13% year-over-year. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, cash flow from operations surged to $4.4 billion, with the company boasting improved operational and commercial execution. Adjusted EBITDA totaled $5.8 billion, benefiting from increased energy prices.

And to top it off, MPC unveiled an incremental $5 billion share buyback program.

Now, onto HF Sinclair.

HF Sinclair

Quarterly Estimates –

Analysts have primarily been bullish for the quarter to be reported, with three upward earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $3.59 indicates a massive Y/Y improvement of more than 3300%.

Zacks Investment Research
Image Source: Zacks Investment Research

Our consensus revenue estimate stands firm at $7.6 billion, suggesting an uptick of more than 35% year-over-year.

Quarterly Performance –

HF Sinclair has consistently posted strong quarterly results, exceeding earnings and revenue estimates in each of its last three quarters.

Just in its latest release, DINO registered a 9% EPS beat and reported sales 25% above expectations.

Zacks Investment Research
Image Source: Zacks Investment Research

Valuation –

DINO’s forward price-to-sales ratio of 0.4X is undoubtedly on the lower end of the spectrum, precisely in line with the five-year median but below the Zacks Oils and Energy sector average.

Zacks Investment Research
Image Source: Zacks Investment Research

Further, the company’s TTM price to book presently resides at 1.1X, again precisely in line with the five-year median and below the Zacks sector average.

Zacks Investment Research
Image Source: Zacks Investment Research

DINO carries a Style Score of “A” for Value.

Putting Everything Together

Investors continue to sort through quarterly prints, with earnings season well underway. We’ve received many quarterly results so far, with many more scheduled to unveil the same in the coming weeks.

We’ll receive Q4 results from HF Sinclair on February 24th, before the market open.

A peer, Marathon Petroleum (MPC - Free Report) , posted better-than-expected results thanks to increased energy prices.

Analysts have been bullish for DINO’s quarter, with estimates indicating sizable year-over-year upticks in earnings and revenue.

In addition, the company has consistently exceeded quarterly estimates, chaining together a solid streak of double beats.

Heading into the release, HF Sinclair (DINO - Free Report) is a Zacks Rank #3 (Hold) with an overall VGM Score of an A.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marathon Petroleum Corporation (MPC) - free report >>

HF Sinclair Corporation (DINO) - free report >>

Published in