How Andeavor Stock Performed before Its 4Q17 Earnings



Andeavor’s stock performance

Since January 2, 2018, Andeavor (ANDV) stock has fallen 13.5%. Its peers have seen similar decreases in the same period. Let’s look at what led to a fall in Andeavor stock.

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Andeavor’s stock fall

Since January 2, 2018, Andeavor stock has fallen steeply, which could represent the continuation of pressure witnessed by Andeavor stock since its 3Q17 earnings release. Its 3Q17 results recorded lower-than-expected earnings. The downtrend may have halted due to the tax reforms in the US. 

Andeavor expects $920.0 million of tax benefits in 4Q17, which may have supported Andeavor stock for a while. However, presumably with the recent decline in the broader stock market, Andeavor stock fell.

The broader market has fallen steeply since the end of January. For more on this, topic, please read What Triggered the Stock Market Panic This Month? The SPDR S&P 500 ETF (SPY) has fallen 1.8% since January 2, 2018. However, Andeavor stock, with its 13.5% loss in the same period, has underperformed SPY.

In 1Q18 quarter-to-date, ANDV’s refining index fell across the regions quarter-over-quarter. ANDV’s consolidated index value fell quarter-over-quarter in 4Q17, denoting a weakening refining environment for the company.

Andeavor’s peers’ performance

Andeavor’s peers Phillips 66 (PSX), Marathon Petroleum (MPC), and Valero Energy (VLO), which posted better-than-expected 4Q17 earnings, have also seen a decline in their stock prices. Since January 2, 2018, PSX, MPC, and VLO have fallen 6.4%, 3.9%, and 3.3%, respectively. 

Refiners HollyFrontier (HFC), PBF Energy (PBF), and Delek US Holdings (DK) have fallen 12.3%, 17.1%, and 10.3%, respectively, in the same period.

Move on to the next part to see where Andeavor’s moving averages stand pre-earnings.


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