Wall Street analysts expect Valero Energy (VLO) to post quarterly earnings of $2.91 per share in its upcoming report, which indicates a year-over-year increase of 155.3%. Revenues are expected to be $29.77 billion, down 9.4% from the year-ago quarter.
The current level reflects an upward revision of 36% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Valero Energy metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts expect 'Total operating revenues- Refining' to come in at $28.91 billion. The estimate suggests a change of -7.8% year over year.
According to the collective judgment of analysts, 'Total operating revenues- Ethanol' should come in at $1.13 billion. The estimate suggests a change of -1.4% year over year.
The collective assessment of analysts points to an estimated 'Total operating revenues- Renewable diesel' of $1.11 billion. The estimate indicates a year-over-year change of -9%.
The consensus among analysts is that 'U.S. Mid-Continent region - Refining margin per barrel of throughput' will reach $10.33 . The estimate compares to the year-ago value of $7.92 .
Analysts predict that the 'U.S. West Coast region - Refining margin per barrel of throughput' will reach $13.74 . Compared to the current estimate, the company reported $7.31 in the same quarter of the previous year.
It is projected by analysts that the 'U.S. Gulf Coast region - Refining margin per barrel of throughput' will reach $10.65 . Compared to the present estimate, the company reported $9.03 in the same quarter last year.
The consensus estimate for 'Refining - Throughput volumes per day' stands at 3,007.56 thousands of barrels of oil. Compared to the present estimate, the company reported 2,884.00 thousands of barrels of oil in the same quarter last year.
The average prediction of analysts places 'U.S. Gulf Coast region - Throughput volumes per day' at 1,805.39 thousands of barrels of oil. The estimate compares to the year-ago value of 1,799.00 thousands of barrels of oil.
Analysts' assessment points toward 'U.S. Mid-Continent region - Throughput volumes per day' reaching 447.87 thousands of barrels of oil. Compared to the present estimate, the company reported 419.00 thousands of barrels of oil in the same quarter last year.
The combined assessment of analysts suggests that 'Refining - Refining margin per barrel of throughput' will likely reach $12.02 . Compared to the present estimate, the company reported $9.09 in the same quarter last year.
Analysts forecast 'North Atlantic region - Throughput volumes per day' to reach 482.18 thousands of barrels of oil. The estimate is in contrast to the year-ago figure of 422.00 thousands of barrels of oil.
Based on the collective assessment of analysts, 'North Atlantic region - Refining margin per barrel of throughput' should arrive at $14.50 . Compared to the present estimate, the company reported $11.55 in the same quarter last year.
View all Key Company Metrics for Valero Energy here>>>
Shares of Valero Energy have demonstrated returns of -3.8% over the past month compared to the Zacks S&P 500 composite's +1.2% change. With a Zacks Rank #2 (Buy), VLO is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Valero Energy Corporation (VLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
