PBF’s earnings estimate

PBF Energy’s (PBF) earnings are estimated to fall by 49% to $1.7 in 2019, which is the highest estimated fall in earnings compared to peers. Delek US Holdings (DK), Valero Energy (VLO), and Marathon Petroleum (MPC) are estimated to post 4%, 10%, and 21% falls in earnings in 2019, respectively. HollyFrontier (HFC) and Phillips 66’s (PSX) earnings could fall by 30% and 37%, respectively, in the year.

PBF Energy’s Earnings to Fall the Most among Peers

Also, PBF Energy’s EPS are expected to fall by 22% YoY to $1.1 in Q2 2019. Analysts expect the company’s earnings to fall likely due to weaker oil spreads expectations. In the first quarter earnings conference call, Thomas Nimbley stated that the narrow light heavy differential is a challenging area for them.

Further, PBF’s financial position is weak due to high debt in its capital structure and a tighter cash flow position. PBF Energy’s total debt to total capital ratio stood at 39% in Q1, above the peer average of 36%. Also, in the quarter, the company’s cash flow could not cover essential expenses like capex and dividends. The company’s operating cash flows stood at -$150 million and capex and dividend outflows stood at $238 million and $36 million, respectively.

Valuations and dividends

PBF Energy trades at a forward PE of 7.9x, below the peer average of 8.5x. PBF’s lower valuations are due to its dull financial position.

Further, PBF Energy’s dividend yield stands at 4.9%, above the peer average of 4.1%. In the current quarter, PBF paid a dividend of $0.3 per share, which stood stable year-over-year.

Overall, PBF’s earnings could plunge the most among peers in 2019. Also, the company’s financials are weak with higher debt and tighter cash flow position.

Latest articles

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”

AMD stock hit a new 13-year high after the EPYC Rome server CPU launched. How can AMD outperform Intel CPUs at such low prices and still profit?

VMware (VMW) lost about 9% in early hours trading today. VMW released its Q2 of fiscal 2020 results on August 22 after the market closed.

Since Netflix posted its Q2 results, its stock has fallen 18%. Could the streaming giant lose its disruptor position as new players enter the market?