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Marathon Petroleum (MPC) Q4 Earnings, Revenue Beat Estimate

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Have you been eager to see how Marathon Petroleum (MPC - Free Report) – a leading downstream operator – performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Findlay, OH-based company’s earnings release this morning:

About Marathon Petroleum: Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company operates in three segments: Refining and Marketing, Speedway (Retail), and Pipeline Transportation.

Zacks Rank & Surprise History: Currently, Marathon Petroleum has a Zacks Rank #3 (Hold) but that could change following its fourth quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Coming to earnings surprise history, the company has a mixed record: its missed estimates in 2 of the last four quarters resulting in an average negative surprise of 14.95%. 

Estimate Revision Trend: Investors should note that the earnings estimate revisions for Marathon Petroleum depicted pessimism prior to the earnings release. The Zacks Consensus Estimate fell 43% over the last 30 days.

We have highlighted some of the key details from the just-released announcement below:

A Higher-than-Expected Profit: Earnings per share came in at 43 cents, higher than the Zacks Consensus Estimate of 25 cents. Solid operational performance led to the outperformance.

Revenue Came in Higher than Expected: Marathon Petroleum posted revenues of $17,284 million, beating the Zacks Consensus Estimate of $13,675 million. Moreover, revenues rose 10% on a year-over-year basis.

Key Stats: Operating income from the Refining & Marketing segment – which is the main contributor to Marathon Petroleum earnings – was $219 million compared with $179 million in the year-ago quarter. The improvement reflects higher crack spreads.

Total refined product sales volumes were 2,252 thousand barrels per day (mbpd), essentially flat from the 2,257 mbpd in the year-ago quarter. However, throughput deteriorated from 1,839 mbpd in the year-ago quarter to 1,810 mbpd.

Income from the Speedway retail stations totaled $165 million, 22% higher than the $135 million earned in the year-ago period. Rise in merchandise margins in addition to lower operating costs, buoyed the results.

Finally, Midstream segment profitability was $245 million, up significantly from $94 million in the fourth quarter of 2015. Earnings were buoyed by operating results from the acquisition of natural gas processor and distributor MarkWest Energy Partners L.P. in late 2015. Contributions from new pipelines and marine equity investments provided further support.

Share Performance: Marathon Petroleum shares have risen 24% over the past 6 months, while the Zacks categorized Oil Refining & Marketing industry has gained 17%.

Check back later for our full write up on this Marathon Petroleum earnings report later!

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