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What Will Global Partners' (GLP) Q4 Earnings Unveil?
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Global Partners LP (GLP - Free Report) is set to release fourth-quarter results on Feb 28. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 96 cents per unit on revenues of $4.4 billion.
Let’s delve into the factors that might have influenced the vertically integrated energy partnership’s results in the December quarter. But it’s worth taking a look at GLP’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the lastreported quarter, the Waltham, MA-based gasoline station and convenience store operator missed the consensus mark on lower fuel margins. GLP had reported net income per unit of 60 cents, underperforming the Zacks Consensus Estimate of 69 cents. Revenues of $4.2 billion generated by the firm also came in 1% below the Zacks Consensus Estimate.
Global Partners missed the Zacks Consensus Estimate for earnings in two of the last four quarters and beat in the other two, resulting in an earnings surprise of (3.3%), on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 37.7% fall year over year. Meanwhile, the Zacks Consensus Estimate for revenues suggests a 0.8% increase from the year-ago period.
Factors to Consider
Global Partners is also expected to have been impacted by weaker margins across its GDSO and the Wholesale units. During the previous three-month period, GLP reported segment margins of $206.5 million and $37.2 million, respectively, declining from 261.6 million and $79.3 million a year ago. The downtrend is likely to have continued in the to-be-reported quarter, with lower contributions from gasoline distribution primarily due to less favorable market conditions.
On a somewhat bullish note, a lower expense structure might have offset some of the negative impacts. Global Partners’ operating costs in the third quarter decreased 3.5% year over year to $180.5 million. The downward cost trajectory is likely to have continued in the October-December period primarily due to prudent expense management.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Global Partners 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: Global Partners has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 96 cents per share each.
Zacks Rank: GLP currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
While an earnings beat looks uncertain for Global Partners, here are some firms that you may want to consider on the basis of our model:
Inter Parfums, Inc. (IPAR - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Inter Parfums indicates 8.6% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 45.7%, on average. Valued at around $4.9 billion, IPAR has gained 26.6% in a year.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 29.
Best Buy beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 12.8%, on average. Valued at around $16.4 billion, BBY has lost 7.7% in a year.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 29.
The 2024 Zacks Consensus Estimate for GoodRx Holdings indicates 15.5% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 18.3%, on average. Valued at around $2.6 billion, GDRX has gone up 22.5% in a year.
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What Will Global Partners' (GLP) Q4 Earnings Unveil?
Global Partners LP (GLP - Free Report) is set to release fourth-quarter results on Feb 28. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 96 cents per unit on revenues of $4.4 billion.
Let’s delve into the factors that might have influenced the vertically integrated energy partnership’s results in the December quarter. But it’s worth taking a look at GLP’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the lastreported quarter, the Waltham, MA-based gasoline station and convenience store operator missed the consensus mark on lower fuel margins. GLP had reported net income per unit of 60 cents, underperforming the Zacks Consensus Estimate of 69 cents. Revenues of $4.2 billion generated by the firm also came in 1% below the Zacks Consensus Estimate.
Global Partners missed the Zacks Consensus Estimate for earnings in two of the last four quarters and beat in the other two, resulting in an earnings surprise of (3.3%), on average. This is depicted in the graph below:
Global Partners LP Price and EPS Surprise
Global Partners LP price-eps-surprise | Global Partners LP Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 37.7% fall year over year. Meanwhile, the Zacks Consensus Estimate for revenues suggests a 0.8% increase from the year-ago period.
Factors to Consider
Global Partners is also expected to have been impacted by weaker margins across its GDSO and the Wholesale units. During the previous three-month period, GLP reported segment margins of $206.5 million and $37.2 million, respectively, declining from 261.6 million and $79.3 million a year ago. The downtrend is likely to have continued in the to-be-reported quarter, with lower contributions from gasoline distribution primarily due to less favorable market conditions.
On a somewhat bullish note, a lower expense structure might have offset some of the negative impacts. Global Partners’ operating costs in the third quarter decreased 3.5% year over year to $180.5 million. The downward cost trajectory is likely to have continued in the October-December period primarily due to prudent expense management.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Global Partners 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: Global Partners has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 96 cents per share each.
Zacks Rank: GLP currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
While an earnings beat looks uncertain for Global Partners, here are some firms that you may want to consider on the basis of our model:
Inter Parfums, Inc. (IPAR - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 27.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The 2024 Zacks Consensus Estimate for Inter Parfums indicates 8.6% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 45.7%, on average. Valued at around $4.9 billion, IPAR has gained 26.6% in a year.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 29.
Best Buy beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 12.8%, on average. Valued at around $16.4 billion, BBY has lost 7.7% in a year.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 29.
The 2024 Zacks Consensus Estimate for GoodRx Holdings indicates 15.5% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 18.3%, on average. Valued at around $2.6 billion, GDRX has gone up 22.5% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.