## Phillips 66 (PSX) Earnings Preview: What to Expect on October 29th
Investors are eagerly awaiting Phillips 66’s (PSX) quarterly earnings report, scheduled for release on Tuesday, October 29th, 2024. The energy giant is expected to report earnings per share (EPS) of $1.72, according to analysts. However, exceeding estimates is just the beginning. Investors are also keen to hear positive guidance for the upcoming quarter, a key indicator of future performance.
Past Performance and Market Reactions:
Remember, earnings performance is important, but market reactions often hinge on guidance. In the previous earnings release, Phillips 66 missed EPS by $0.24, resulting in a 1.15% drop in the share price the following trading session. Here’s a look at Phillips 66’s past performance and its impact on share prices:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 2.55 | 2.31 | -1.0% |
| Q1 2024 | 2.17 | 1.90 | -4.0% |
| Q4 2023 | 2.34 | 3.09 | 1.0% |
| Q3 2023 | 4.76 | 4.63 | 1.0% |
Tracking Phillips 66’s Stock Performance:
Shares of Phillips 66 were trading at $128.17 on October 25th. Over the past 52-week period, shares are up 12.28%. This positive trend suggests long-term shareholders are likely optimistic heading into this earnings release.
Analyst Insights:
Staying informed about market sentiment and industry expectations is crucial for investors. Here’s a breakdown of the latest insights on Phillips 66:
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Analyst Ratings:
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:
To understand Phillips 66’s market positioning, let’s compare it with its peers: Marathon Petroleum, Valero Energy, and HF Sinclair.*
Marathon Petroleum:
Analysts currently favor a “Neutral” trajectory, with an average 1-year price target of $175.55, suggesting a potential 36.97% upside.*
Valero Energy:
Analysts favor an “Outperform” trajectory, with an average 1-year price target of $152.58, suggesting a potential 19.05% upside.*
HF Sinclair:
The consensus among analysts is an “Outperform” trajectory, with an average 1-year price target of $54.57, indicating a potential 57.42% downside.Peer Metrics Summary:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Phillips 66 | Outperform | 8.66% | $3.00B | 3.42% |
| Marathon Petroleum | Neutral | 4.32% | $3.13B | 6.85% |
| Valero Energy | Outperform | -4.68% | $1.43B | 1.44% |
| HF Sinclair | Outperform | 0.16% | $893.11M | 1.50% |
Key Takeaway:
Phillips 66 ranks at the top for Revenue Growth and Gross Profit among its peers. It sits in the middle for Return on Equity.Unveiling the Story Behind Phillips 66:
Phillips 66 is an independent refiner with 12 refineries boasting a total crude throughput capacity of 1.8 million barrels per day (mmb/d). In 2023, the Rodeo, California, facility ceased operations and is being converted to produce renewable diesel. The midstream segment comprises extensive transportation and NGL processing assets, including 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, primarily producing olefins and polyolefins.
Financial Milestones: Phillips 66’s Journey
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Market Capitalization:
Phillips 66 boasts an elevated market capitalization, surpassing industry averages. This signals substantial size and strong market recognition.*
Revenue Growth:
Phillips 66’s impressive revenue growth rate of 8.66% as of June 30th, 2024, demonstrates a substantial increase in top-line earnings. This growth rate surpasses the average among its peers in the Energy sector.*
Net Margin:
Phillips 66’s net margin exceeds industry averages, showcasing strong profitability and effective cost management. The company boasts a remarkable net margin of 2.65%.*
Return on Equity (ROE):
Phillips 66’s ROE surpasses industry averages, demonstrating effective use of equity capital and strong financial performance. The company boasts an impressive ROE of 3.42%.*
Return on Assets (ROA):
Phillips 66’s ROA surpasses industry standards, highlighting the company’s exceptional financial performance. The company boasts an impressive 1.33% ROA.*
