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Why Is Marathon Petroleum (MPC) Up 0.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Marathon Petroleum (MPC - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Marathon Petroleum due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Marathon Q4 Earnings Beat Estimates
Marathon Petroleum Corporation reported fourth-quarter adjusted earnings per share of $3.98, which comfortably beat the Zacks Consensus Estimate of $2.36. The outperformance primarily reflects the stronger-than-expected performance of its key Refining & Marketing segment. Operating income of the segment totaled $1.2 billion, above the consensus mark of $812 million.
However, the company’s bottom line fell from the year-ago adjusted profit of $6.65 due to a higher unit operating cost and a drop in refining margin.
Marathon Petroleum reported revenues of $36.8 billion, which beat the Zacks Consensus Estimate of $33.7 billion but declined 8.2% year over year.
Inside MPC’s Segments
Refining & Marketing: The Refining & Marketing segment reported an operating income of $1.2 billion, which fell 68.2% from the year-ago profit of $3.9 billion. The drop primarily reflects lower year-over-year margins and a decrease in capacity utilization. Specifically, the refining margin of $17.79 per barrel declined from $28.82 a year ago. Capacity utilization during the quarter was 91%, down from 94% in the corresponding period of 2022.
Meanwhile, total refined product sales volumes were 3,612 thousand barrels per day (mbpd), up from 3,532 mbpd in the year-ago quarter. Also, throughput rose from 2,895 mbpd in the year-ago quarter to 2,931 mbpd and outperformed the Zacks Consensus Estimate of 2,891 mbpd.
MPC’s operating costs per barrel increased from $5.62 in the year-ago quarter to $5.67.
Midstream: This unit mainly reflects Marathon Petroleum’s general partner and majority limited partner interests in MPLX LP.
Segment profitability was $1.3 billion, up 18.1% from the fourth quarter of 2022. Earnings were buoyed up by higher throughputs and taxes.
Financial Analysis
Marathon Petroleum reported expenses of $34.4 billion in fourth-quarter 2023, down 2.6% from the year-ago quarter. In the reported quarter, Marathon Petroleum spent $780 million on capital programs (50% on Refining & Marketing and 46% on the Midstream segment) compared to $849 million in the year-ago period.
MPC guided that its standalone capital expenditure (excluding MPLX) will come in at $1.25 billion for 2024.
As of Dec 31, the company had cash and cash equivalents of $5.4 billion and total debt, including that of MPLX, of $27.3 billion, with a debt-to-capitalization of 47.2%.
In the fourth quarter, MPC repurchased $2.5 billion of shares and a further $900 million worth of shares in January. The company currently has a remaining authorization of $5.9 billion.
Segment profitability was $1.2 billion, up 13.2% from the first quarter of 2022. Earnings were supported by higher tariff rates and the stable, fee-based revenues from MPLX’s wide range of midstream energy services.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -26.47% due to these changes.
VGM Scores
At this time, Marathon Petroleum has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Marathon Petroleum has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Marathon Petroleum is part of the Zacks Oil and Gas - Refining and Marketing industry. Over the past month, Valero Energy (VLO - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
Valero Energy reported revenues of $35.41 billion in the last reported quarter, representing a year-over-year change of -15.2%. EPS of $3.55 for the same period compares with $8.45 a year ago.
Valero Energy is expected to post earnings of $2.87 per share for the current quarter, representing a year-over-year change of -65.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.
Valero Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Marathon Petroleum (MPC) Up 0.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Marathon Petroleum (MPC - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Marathon Petroleum due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Marathon Q4 Earnings Beat Estimates
Marathon Petroleum Corporation reported fourth-quarter adjusted earnings per share of $3.98, which comfortably beat the Zacks Consensus Estimate of $2.36. The outperformance primarily reflects the stronger-than-expected performance of its key Refining & Marketing segment. Operating income of the segment totaled $1.2 billion, above the consensus mark of $812 million.
However, the company’s bottom line fell from the year-ago adjusted profit of $6.65 due to a higher unit operating cost and a drop in refining margin.
Marathon Petroleum reported revenues of $36.8 billion, which beat the Zacks Consensus Estimate of $33.7 billion but declined 8.2% year over year.
Inside MPC’s Segments
Refining & Marketing: The Refining & Marketing segment reported an operating income of $1.2 billion, which fell 68.2% from the year-ago profit of $3.9 billion. The drop primarily reflects lower year-over-year margins and a decrease in capacity utilization. Specifically, the refining margin of $17.79 per barrel declined from $28.82 a year ago. Capacity utilization during the quarter was 91%, down from 94% in the corresponding period of 2022.
Meanwhile, total refined product sales volumes were 3,612 thousand barrels per day (mbpd), up from 3,532 mbpd in the year-ago quarter. Also, throughput rose from 2,895 mbpd in the year-ago quarter to 2,931 mbpd and outperformed the Zacks Consensus Estimate of 2,891 mbpd.
MPC’s operating costs per barrel increased from $5.62 in the year-ago quarter to $5.67.
Midstream: This unit mainly reflects Marathon Petroleum’s general partner and majority limited partner interests in MPLX LP.
Segment profitability was $1.3 billion, up 18.1% from the fourth quarter of 2022. Earnings were buoyed up by higher throughputs and taxes.
Financial Analysis
Marathon Petroleum reported expenses of $34.4 billion in fourth-quarter 2023, down 2.6% from the year-ago quarter. In the reported quarter, Marathon Petroleum spent $780 million on capital programs (50% on Refining & Marketing and 46% on the Midstream segment) compared to $849 million in the year-ago period.
MPC guided that its standalone capital expenditure (excluding MPLX) will come in at $1.25 billion for 2024.
As of Dec 31, the company had cash and cash equivalents of $5.4 billion and total debt, including that of MPLX, of $27.3 billion, with a debt-to-capitalization of 47.2%.
In the fourth quarter, MPC repurchased $2.5 billion of shares and a further $900 million worth of shares in January. The company currently has a remaining authorization of $5.9 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -26.47% due to these changes.
VGM Scores
At this time, Marathon Petroleum has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Marathon Petroleum has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Marathon Petroleum is part of the Zacks Oil and Gas - Refining and Marketing industry. Over the past month, Valero Energy (VLO - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
Valero Energy reported revenues of $35.41 billion in the last reported quarter, representing a year-over-year change of -15.2%. EPS of $3.55 for the same period compares with $8.45 a year ago.
Valero Energy is expected to post earnings of $2.87 per share for the current quarter, representing a year-over-year change of -65.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.
Valero Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.