We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Phillips 66 (PSX) Up 9.2% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Phillips 66 (PSX - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Phillips 66 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.
Phillips 66 reported third-quarter 2024 adjusted earnings of $2.04 per share, which beat the Zacks Consensus Estimate of $1.63. However, the bottom line was lower than the year-ago quarter’s level of $4.63.
Total quarterly revenues of $36.4 billion beat the Zacks Consensus Estimate of $32 billion. However, the top line declined from the year-ago level of $40.3 billion.
The better-than-expected quarterly results can be primarily attributed to cost reduction and the achievement of Midstream synergy targets. However, this was partially offset by reduced contributions from the Refining segment due to a decline in realized margins.
Segmental Results
Midstream:
The segment generated adjusted pre-tax quarterly earnings of $672 million, up from $581 million in the year-ago quarter. The reported figure also surpassed our estimate of $640.3 million. The increase can be attributed to higher export margins, partially offset by seasonal maintenance costs.
Chemicals:
The unit recorded adjusted pre-tax earnings of $342 million, up from $104 million in the prior-year quarter. The reported figure also surpassed our estimate of $106.2 million. The rise in profits can be primarily attributed to increased margins and lower costs.
Refining:
The segment reported an adjusted pre-tax loss of $67 million against adjusted pre-tax earnings of $1.74 billion in the year-ago quarter. The reported figure also missed our projection of earnings of $976 million. The deterioration was primarily due to a decline in realized margins, largely caused by lower market crack spreads.
Refining’s realized refining margins worldwide declined to $8.31 per barrel from the year-ago quarter’s $19.06, and the same in the Central Corridor and Atlantic Basin/Europe declined to $14.19 and $5.87 per barrel, respectively, from the year-ago quarter’s $19.25 and $16.15.
The West Coast’s margins declined to $4.34 per barrel from $31.65 in the year-ago quarter. In the Gulf Coast, the metric declined to $6.39 per barrel from $13.99 a year ago.
Marketing & Specialties
Pre-tax earnings declined to $583 million from $605 million in the year-ago quarter. The reported figure beat our projection of $464.1 million.
Realized marketing fuel margins in the United States declined to $2.45 per barrel from the year-ago quarter’s $2.85, and the same in the international markets increased to $6.19 from $5.55 a year ago.
Renewable Fuels:
The segment reported an adjusted pre-tax loss of $116 million against adjusted pre-tax earnings of $22 million in the year-ago quarter. The reported figure was wider than our projection of a loss of $50.6 million. This was primarily due to lower realized margins, partially offset by higher volumes.
Costs & Expenses
Total costs and expenses in the third quarter decreased to $35.75 billion from $37.51 billion in the year-ago period. Our projection for the same was pinned at $29.75 billion.
Financial Condition
Phillips 66 generated $1.13 billion of net cash from operations for the reported quarter, significantly lower than $2.69 billion a year ago. The company’s capital expenditure and investments totaled $358 million. It paid out dividends of $477 million in the third quarter.
As of Sept. 30, 2024, cash and cash equivalents were $1.6 billion. Total debt was $19.9 billion, reflecting a debt-to-capitalization of 39.6%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -34.05% due to these changes.
VGM Scores
At this time, Phillips 66 has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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, Phillips 66 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
Phillips 66 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 7.6%. The company reported its results for the quarter ended September 2024 more than a month ago.
Valero Energy reported revenues of $32.88 billion in the last reported quarter, representing a year-over-year change of -14.4%. EPS of $1.14 for the same period compares with $7.49 a year ago.
For the current quarter, Valero Energy is expected to post earnings of $0.77 per share, indicating a change of -78.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -25.7% over the last 30 days.
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 B.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Phillips 66 (PSX) Up 9.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Phillips 66 (PSX - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Phillips 66 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.
Phillips 66 Q3 Earnings Beat Estimates, Revenues Decline Y/Y
Phillips 66 reported third-quarter 2024 adjusted earnings of $2.04 per share, which beat the Zacks Consensus Estimate of $1.63. However, the bottom line was lower than the year-ago quarter’s level of $4.63.
Total quarterly revenues of $36.4 billion beat the Zacks Consensus Estimate of $32 billion. However, the top line declined from the year-ago level of $40.3 billion.
The better-than-expected quarterly results can be primarily attributed to cost reduction and the achievement of Midstream synergy targets. However, this was partially offset by reduced contributions from the Refining segment due to a decline in realized margins.
Segmental Results
Midstream:
The segment generated adjusted pre-tax quarterly earnings of $672 million, up from $581 million in the year-ago quarter. The reported figure also surpassed our estimate of $640.3 million. The increase can be attributed to higher export margins, partially offset by seasonal maintenance costs.
Chemicals:
The unit recorded adjusted pre-tax earnings of $342 million, up from $104 million in the prior-year quarter. The reported figure also surpassed our estimate of $106.2 million. The rise in profits can be primarily attributed to increased margins and lower costs.
Refining:
The segment reported an adjusted pre-tax loss of $67 million against adjusted pre-tax earnings of $1.74 billion in the year-ago quarter. The reported figure also missed our projection of earnings of $976 million. The deterioration was primarily due to a decline in realized margins, largely caused by lower market crack spreads.
Refining’s realized refining margins worldwide declined to $8.31 per barrel from the year-ago quarter’s $19.06, and the same in the Central Corridor and Atlantic Basin/Europe declined to $14.19 and $5.87 per barrel, respectively, from the year-ago quarter’s $19.25 and $16.15.
The West Coast’s margins declined to $4.34 per barrel from $31.65 in the year-ago quarter. In the Gulf Coast, the metric declined to $6.39 per barrel from $13.99 a year ago.
Marketing & Specialties
Pre-tax earnings declined to $583 million from $605 million in the year-ago quarter. The reported figure beat our projection of $464.1 million.
Realized marketing fuel margins in the United States declined to $2.45 per barrel from the year-ago quarter’s $2.85, and the same in the international markets increased to $6.19 from $5.55 a year ago.
Renewable Fuels:
The segment reported an adjusted pre-tax loss of $116 million against adjusted pre-tax earnings of $22 million in the year-ago quarter. The reported figure was wider than our projection of a loss of $50.6 million. This was primarily due to lower realized margins, partially offset by higher volumes.
Costs & Expenses
Total costs and expenses in the third quarter decreased to $35.75 billion from $37.51 billion in the year-ago period. Our projection for the same was pinned at $29.75 billion.
Financial Condition
Phillips 66 generated $1.13 billion of net cash from operations for the reported quarter, significantly lower than $2.69 billion a year ago. The company’s capital expenditure and investments totaled $358 million. It paid out dividends of $477 million in the third quarter.
As of Sept. 30, 2024, cash and cash equivalents were $1.6 billion. Total debt was $19.9 billion, reflecting a debt-to-capitalization of 39.6%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -34.05% due to these changes.
VGM Scores
At this time, Phillips 66 has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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, Phillips 66 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
Phillips 66 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 7.6%. The company reported its results for the quarter ended September 2024 more than a month ago.
Valero Energy reported revenues of $32.88 billion in the last reported quarter, representing a year-over-year change of -14.4%. EPS of $1.14 for the same period compares with $7.49 a year ago.
For the current quarter, Valero Energy is expected to post earnings of $0.77 per share, indicating a change of -78.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -25.7% over the last 30 days.
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 B.