A month has gone by since the last earnings report for Phillips 66 (PSX - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Phillips 66 due for a breakout? 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 Beats Q1 Earnings Estimates, Misses Revenues
Phillips 66 posted first-quarter 2019 adjusted earnings per share of 40 cents, which surpassed the Zacks Consensus Estimate of 34 cents, courtesy of contributions from pipeline transportation businesses. The bottom line, however, fell from the year-ago $1.04 per share, owing to a significant decline in crude utilization rate.
Quarterly revenues totaled $23.7 billion, down from the year-ago quarter’s $24.1 billion. The top line also missed the Zacks Consensus Estimate of $24.7 billion.
The segment generated adjusted quarterly earnings of $316 million, up from $280 million in the year-ago quarter on increased contributions from pipeline transportation businesses.
The segment reported adjusted earnings of $227 million, down from $286 million in the year-ago quarter owing to lower margins.
The segment’s adjusted loss was $219 million against the year-ago quarter’s earnings of $110 million. The underperformance can be attributed to unplanned downtime, maintenance work and a substantial decline in crude utilization rate. During the quarter, Phillips 66’s refining utilization was 84%.
Marketing and Specialties (M&S)
This segment’s earnings deteriorated from $222 million in the year-ago quarter to $205 million.
In the reported quarter, Phillips 66 used in $478 million of cash from operations. Through dividend payments along with share repurchases, the company returned capital worth $708 million to stockholders.
As of Mar 31, 2019, cash and cash equivalents were $1,253 million along with debt of $11.3 billion. The company’s debt-to-capitalization ratio was 30%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
At this time, Phillips 66 has a subpar Growth Score of D, though it is lagging a bit 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.
Phillips 66 has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.