Marathon Petroleum’s Implied Volatility ahead of Q4 Earnings
Implied volatility in Marathon Petroleum (MPC) currently stands at 34%. It has risen from 31% on December 27, 2016.
In this series, we examined Marathon Petroleum’s (MPC) fourth-quarter estimates, refining margin outlook, and stock performance ahead of its earnings release.
Marathon Petroleum’s (MPC) operating income fell 72% over 3Q15 to $435 million in 3Q16.
Refining stocks usually perform in line with refining margins and cracks. Since February 2016, refining stocks have had a volatile performance.
Marathon Petroleum (MPC) is expected to post its 4Q16 results on February 1, 2017. Before we proceed with 4Q16 estimates, let’s recap MPC’s 3Q16 performance versus estimates.
MasterCard’s (MA) rebates and incentives have grown at a faster pace over the past few quarters in a bid to garner more partnerships and client spending.
The analyst rating chart below shows that 28 out of the 34 analysts covering MasterCard (MA) have rated it a “buy” or “strong buy” in January 2017.
Mastercard (MA) stock has returned 7% over the past quarter and 25% over the past year, mainly due to consistent growth and improving operating margins.
MasterCard (MA) has generated $3.5 million in operating cash flows for 9M16, up 16% on a year-over-year basis.
MasterCard (MA) has seen a steady rise in processed transactions on the back of rising transactions in international markets.
Mastercard (MA) is looking for more partnerships with corporates and institutions involving preferred payments and technology solutions.
MasterCard (MA) is expected to see higher international spending in 4Q16. However, the strong dollar is expected to impact growth.
MasterCard (MA) is expected to post earnings per share or EPS of $0.86—growth of 9% on a year-over-year basis.
Of the 15 analysts tracking Xcel Energy, 12 have recommended a “hold,” and two have recommended a “strong buy.”
Xcel Energy (XEL) seems to currently be trading at a fair valuation. On January 20, 2017, it was trading at an EV-to-EBITDA multiple of 10.0x.
As of January 20, 2017, Xcel Energy (XEL) stock was trading at a 3.0% premium and at a marginal discount to its 50-day and 200-day moving averages.
According to analyst estimates, Xcel Energy (XEL) is expected to report earnings of $0.44 per share against $0.41 per share in 4Q15.
According to the EIA, US residential power prices at the start of 4Q16 were 2.1% lower than in the same period last year.
Xcel Energy (XEL) is set to report its 4Q16 and 2016 financial results on February 2, 2017. The company is expected to report total revenues of $3.2 billion.
Of the 21 analysts tracking Dominion Resources on January 20, 2017, four recommended it as a “strong buy,” while three recommended it as a “buy.”