Phillips 66 (PSX - Free Report) posted second-quarter 2017 adjusted earnings of $1.09 per share which surpassed the Zacks Consensus Estimate of $1.02. The bottom line also increased from the year-ago quarter level of 94 cents. The growth came on the back of higher contribution from all segments, except the Marketing and Specialties segment.
Quarterly revenues of $24.6 billion were higher than the year-ago quarter level of $22.3 billion. However, the top line lagged the Zacks Consensus Estimate of $25.14 billion.
The segment generated adjusted quarterly earnings of $59 million compared with $39 million in the year-ago quarter. Gain from the sale of a non-core gathering system led to increased income.
The segment generated adjusted earnings of $196 million compared with $190 million in the comparable quarter last year. Higher volumes and improved margins led to the increase.
The segment’s adjusted earnings of $224 million increased from $149 million in the prior-year quarter. During the quarter, Phillips 66’s refining utilization was 98% and clean product yield was at 85%.
Marketing and Specialties (M&S)
This segment recorded earnings of $214 million, down from $229 million reported in the comparable quarter last year.
In the reported quarter, Phillips 66 generated $1.9 billion of cash from operations. It also returned capital worth $741 million to shareholders. Of this, $360 million was disbursed as dividends, while $381 million was utilized to repurchase common stock.
As of Jun 30, cash and cash equivalents were $2.2 billion alongside $10 billion of debt. The company’s debt-to-capitalization ratio was 30%.
Zacks Rank and Stocks to Consider
Currently, Phillips 66 carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same space include Enbridge Energy, LP (EEP - Free Report) , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . While Braskem and TransCanada sport a Zacks Rank #1 (Strong Buy), Enbridge Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 38.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 1.06%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>