Phillips 66 Earnings Preview

Phillips 66 PSX will release its quarterly earnings report on Tuesday, 2024-10-29. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Phillips 66 to report an earnings per share (EPS) of $1.72.

Anticipation surrounds Phillips 66's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

In the previous earnings release, the company missed EPS by $0.24, leading to a 1.15% drop in the share price the following trading session.

Here's a look at Phillips 66's past performance and the resulting price change:

Tracking Phillips 66's Stock Performance

Shares of Phillips 66 were trading at $128.17 as of October 25. Over the last 52-week period, shares are up 12.28%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Phillips 66

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Phillips 66.

Analysts have given Phillips 66 a total of 15 ratings, with the consensus rating being Outperform. The average one-year price target is $151.33, indicating a potential 18.07% upside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Marathon Petroleum, Valero Energy and HF Sinclair, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Marathon Petroleum, with an average 1-year price target of $175.55, suggesting a potential 36.97% upside.
• As per analysts' assessments, Valero Energy is favoring an Outperform trajectory, with an average 1-year price target of $152.58, suggesting a potential 19.05% upside.
• The consensus among analysts is an Outperform trajectory for HF Sinclair, with an average 1-year price target of $54.57, indicating a potential 57.42% downside.

Peer Metrics Summary

The peer analysis summary offers a detailed examination of key metrics for Marathon Petroleum, Valero Energy and HF Sinclair, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Phillips 66 ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Unveiling the Story Behind Phillips 66

Phillips 66 is an independent refiner with 12 refineries that have a total crude throughput capacity of 1.8 million barrels per day, or mmb/d. In 2023, the Rodeo, California, facility ceased operations and be converted to produce renewable diesel. The midstream segment comprises extensive transportation and NGL processing assets and includes DCP Midstream, which holds 600 mbd of NGL fractionation and 22,000 miles of pipeline. Its CPChem chemical joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins.

Financial Milestones: Phillips 66's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Phillips 66's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 8.66%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Phillips 66's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.65%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Phillips 66's ROE stands out, surpassing industry averages. With an impressive ROE of 3.42%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Phillips 66's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.33% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Phillips 66's debt-to-equity ratio is below the industry average. With a ratio of 0.68, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Phillips 66 visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.