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What's in the Cards for Delek Logistics (DKL) in Q4 Earnings?

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Delek Logistics Partners, L.P. (DKL - Free Report) is slated to report fourth-quarter 2019 results on Feb 25, after market close. The partnership has a trailing four-quarter negative earnings surprise of 1.87%, on average.

Factors to Consider

Delek Logistics entered the profitable Red River joint venture in May 2019. Moreover, the partnership has other joint venture assets in the productive Permian Basin. The company’s fourth-quarter performance is expected to have benefited from these JV assets.

Delek Logistics’ existing multi-year contracts are also expected to have played a positive role.  

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter 2019 sales is pegged at $139.40 million, which indicates a decline of 12.49% from the year-ago quarter’s figure. The Zacks Consensus Estimate for earnings per share is pinned at 73 cents, which calls for year-over-year increase of 25.86%.

Delek Logistics Partners, L.P. Price and EPS Surprise

 

Delek Logistics Partners, L.P. Price and EPS Surprise

Delek Logistics Partners, L.P. price-eps-surprise | Delek Logistics Partners, L.P. Quote

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for Delek Logistics this time around. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Although the partnership has a Zacks Rank #3, its Earnings ESP is 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Investors can consider a few companies from the same sector that have the right combination of elements to post an earnings beat in their upcoming quarterly releases.

Apache (APA - Free Report) is slated to release fourth-quarter results on Feb 26. It has an Earnings ESP of +27.42% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

California Resources (CRC - Free Report) is scheduled to announce fourth-quarter results on Feb 26. It has an Earnings ESP of +0.51% and a Zacks Rank #2.
 
EOG Resources (EOG - Free Report) is set to release fourth-quarter results on Feb 28. It has an Earnings ESP of +0.18% and a Zacks Rank #3.

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