We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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) Q4 Earnings Miss on Lower Refining Margin
Read MoreHide Full Article
Phillips 66 (PSX - Free Report) posted adjusted fourth-quarter 2016 earnings of 16 cents per share that missed the Zacks Consensus Estimate of 39 cents and also came in below the year-ago figure of $1.31 million. Lower refining margins due to reduced market crack spread resulted in the underperformance. The negatives were mitigated to some extent by improved midstream business.
Quarterly revenues of $23,668 million surpassed the Zacks Consensus Estimate of $21,614 million as well as the year-ago quarter figure of $22,029 million.
Segmental Results
Midstream
The segment posted quarterly loss of $1 million, substantially narrower than a loss of $77 million in the year-ago quarter.
Chemicals
The segment reported earnings of $136 million as against $212 million in the year-earlier quarter. Higher turnaround activity led to the decrease.
Refining
The segment incurred loss of $38 million, which compared unfavorably with earnings of $410 million in the prior-year quarter. Decreased realized margins owing to lower market crack spread resulted in the underperformance.
Marketing and Specialties (M&S)
This segment recorded earnings of $190 million compared with $231 million in the year-ago quarter.
Financial Condition
In the reported quarter, Phillips 66 generated $667 million of cash from operations. It also returned capital worth $558 million to shareholders.
As of Dec 31, 2016, the company had cash and cash equivalents of $2.7 billion and debt of $10.1 billion. The company’s debt-to-capitalization ratio was 30%.
Price Performance
In the last three months, Phillips 66 shares underperformed the Zacks categorized Oil Refining & Marketing industry. During the aforesaid period, the company’s shares gained 3.2% compared with 10% improvement for the broader industry.
For 2017, Imperial Oil is anticipated to post year-over-year earnings growth of 386.6%
Suncor posted an average earnings surprise of 40.55% in the last four quarters.
Denbury surpassed the Zacks Consensus Estimate in each of the last four quarters with an average earnings surprise of 283.33%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Phillips 66 (PSX) Q4 Earnings Miss on Lower Refining Margin
Phillips 66 (PSX - Free Report) posted adjusted fourth-quarter 2016 earnings of 16 cents per share that missed the Zacks Consensus Estimate of 39 cents and also came in below the year-ago figure of $1.31 million. Lower refining margins due to reduced market crack spread resulted in the underperformance. The negatives were mitigated to some extent by improved midstream business.
Quarterly revenues of $23,668 million surpassed the Zacks Consensus Estimate of $21,614 million as well as the year-ago quarter figure of $22,029 million.
Segmental Results
Midstream
The segment posted quarterly loss of $1 million, substantially narrower than a loss of $77 million in the year-ago quarter.
Chemicals
The segment reported earnings of $136 million as against $212 million in the year-earlier quarter. Higher turnaround activity led to the decrease.
Refining
The segment incurred loss of $38 million, which compared unfavorably with earnings of $410 million in the prior-year quarter. Decreased realized margins owing to lower market crack spread resulted in the underperformance.
Marketing and Specialties (M&S)
This segment recorded earnings of $190 million compared with $231 million in the year-ago quarter.
Financial Condition
In the reported quarter, Phillips 66 generated $667 million of cash from operations. It also returned capital worth $558 million to shareholders.
As of Dec 31, 2016, the company had cash and cash equivalents of $2.7 billion and debt of $10.1 billion. The company’s debt-to-capitalization ratio was 30%.
Price Performance
In the last three months, Phillips 66 shares underperformed the Zacks categorized Oil Refining & Marketing industry. During the aforesaid period, the company’s shares gained 3.2% compared with 10% improvement for the broader industry.
Zacks Rank
Phillips 66 currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector include Imperial Oil Limited (IMO - Free Report) , Suncor Energy Inc. (SU - Free Report) and Denbury Resources Inc. . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2017, Imperial Oil is anticipated to post year-over-year earnings growth of 386.6%
Suncor posted an average earnings surprise of 40.55% in the last four quarters.
Denbury surpassed the Zacks Consensus Estimate in each of the last four quarters with an average earnings surprise of 283.33%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>