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MPC, VLO, HFC, and PSX: Beats and Misses in Q4

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Beats and misses in the fourth quarter

Recently, refining stocks including Marathon Petroleum (MPC), HollyFrontier (HFC), Valero Energy (VLO), and Phillips 66 (PSX) posted their fourth-quarter earnings. All of these companies beat analysts’ fourth-quarter earnings estimate.

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Marathon Petroleum

In the fourth quarter, Marathon Petroleum (MPC) posted an EPS of $1.35. After adjusting the EPS for special costs related to the Andeavor acquisition and MPLX debt extinguishment, Marathon Petroleum’s EPS was $2.41. Analysts’ estimated EPS was $1.96.

HollyFrontier

HollyFrontier’s (HFC) revenues of $4.3 billion rose 9% YoY. The company’s adjusted EPS of $2.3 in the fourth quarter beat analysts’ estimate of $1.9. The higher earnings were led by a steep rise in the refining margin and earnings. HollyFrontier’s adjusted EBITDA rose 92% YoY to $641 million in the fourth quarter.

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Valero Energy

In the fourth quarter, Valero Energy’s (VLO) revenues beat analysts’ mean estimate by ~20%. The company’s adjusted EPS was $2.1, which beat analysts’ estimated EPS of $1.1 by ~98%. Valero Energy’s fourth-quarter EPS was 83% higher than its adjusted EPS in the fourth quarter of 2017.

Phillips 66

Phillips 66’s fourth-quarter revenues at $29.8 billion beat analysts’ estimate by ~5%. The company’s adjusted EPS was $4.9 in the fourth quarter, which beat analysts’ estimated EPS of $3.0. Phillips 66 posted its highest quarterly adjusted EPS since the fourth quarter of 2015. Also, the company’s fourth-quarter adjusted EPS rose 355% YoY.

Next, we’ll discuss these companies’ fourth-quarter earnings in more detail.

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