What's In The Cards For Valero Energy (VLO) In Q4 Earnings?
Zacks Investment Research | Jan 28, 2019 07:33AM ET
Valero Energy Corporation (NYSE:VLO) is set to report fourth-quarter 2018 results on Jan 31, before market open.
The leading independent refining player surpassed the Zacks Consensus Estimate in the last four quarters, the average positive earnings surprise being 6.9%. Let’s see how things are shaping up prior to the announcement.
Which Way are Estimates Treading?
Let’s take a look at the estimate revision trend to get a clear picture of what analysts feel about the upcoming earnings release.
The Zacks Consensus Estimate for fourth-quarter earnings of $1.04 has seen five upward revisions and one downward movement in the past 30 days. The figure reflects year-over-year decline of 10.3%.
Further, the Zacks Consensus Estimate for revenues is pegged at $29,071 million for the impending quarter, showing an increase of 10.2% year over year.
Factors to Consider
Valero Energy is among the leading independent refining players in the domestic market with 15 petroleum refineries.
The Zacks Consensus Estimate for fourth-quarter operating income in the refining segment is pegged at $981 million, reflecting a decline from $1,329 million in the last reported quarter but showing an increase from $982 million in the year-ago quarter.
Moreover, the Zacks Consensus Estimate for operating loss in the ethanol segment is pegged at $26.87 million, compared to operating income of $21.00 million in the preceding quarter and $37 million in the prior-year quarter.
The Zacks Consensus Estimate for operating income in the VLP segment is pegged at $85 million, showing a fall from $90 million the last reported quarter but indicating a rise from $80 million in the year-ago quarter.
The aforementioned parameters do not ensure better-than-expected performance by Valero Energy’s units in the to-be-reported quarter.
Earnings Whisper
Our proven model does not indicate a beat for Valero Energy. That is because a stock needs to have a positive Zacks Investment Research
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