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Is a Beat in the Cards for Sunoco (SUN) in Q1 Earnings?

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Sunoco LP (SUN - Free Report) is set to report first-quarter 2023 results on May 2, before the opening bell.

The master limited partnership’s fourth-quarter earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents due to higher total cost of sales and operating expenses. 

In the trailing four quarters, Sunoco beat the Zacks Consensus Estimate for the bottom line twice and missed the same twice, delivering an earnings surprise of 21.6%, on average. This is depicted in the graph below:

Sunoco LP Price and EPS Surprise

Sunoco LP Price and EPS Surprise

Sunoco LP price-eps-surprise | Sunoco LP Quote

Estimate Trend

The Zacks Consensus Estimate for Sunoco’s first-quarter earnings per unit of $1.21 has witnessed one upward revision and one downward movement in the past 30 days. The figure suggests a year-over-year decline of 47.8%.

The Zacks Consensus Estimate for the company’s revenues for the March quarter is pegged at $5.5 billion, suggesting a year-over-year rise of 2.1%.

Earnings Whispers

Our proven model predicts an earnings beat for Sunoco 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. As you can see, that is the case here.

Earnings ESP: Sunoco has an Earnings ESP of +5.66%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sunoco currently sports a Zacks Rank #1.

Factors to Consider

Sunoco has been reporting increasing figures for total motor fuel gallons sold, thanks to the economic reopening that is leading to increased demand for motor fuel. Being the largest independent fuel distributor in America, Sunoco has been depicting a stable business model. The positive development is likely to have aided SUN in the March quarter as well.

The Zacks Consensus Estimate for Sunoco’s total motor fuel gallons sold in the first quarter is pegged at 1,834 million, suggesting an increase from 1,769 million recorded in the year-ago quarter. Our estimate for the partnership’s total motor fuel gallons sold in the first quarter is 1,809.6 million, also implying an improvement from the year-ago quarter’s reported figure.

Other Stocks to Consider

Here are some other firms worth considering, as these, too, have the right combination of elements to beat on earnings in the upcoming quarterly reports:

Enterprise Products Partners L.P. (EPD - Free Report) currently has an Earnings ESP of +1.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for its earnings is pegged at 61 cents per share.

EOG Resources, Inc. (EOG - Free Report) currently has an Earnings ESP of +0.58% and a Zacks Rank #3.

EOG Resources is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for its earnings is pegged at $2.42 per share.

Magellan Midstream Partners LP has an Earnings ESP of +1.03% and is currently a Zacks #3 Ranked player.

Magellan Midstream is scheduled to release first-quarter results on May 04. The Zacks Consensus Estimate for its earnings is pegged at $1.22 per share, suggesting an increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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