CVR Refining Earnings: Here’s Why the Stock is Rising Now

CVR Refining LP (NYSE:CVRR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.38%.

CVR Refining LP Earnings Cheat Sheet

Results:

Revenue: Decreased 0% to $2.13 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CVR Refining LP reported adjusted EPS income of $2.3 per share. By that measure, the company beat the mean analyst estimate of $1.69. It beat the average revenue estimate of $2.1 billion.

Quoting Management: VR Refining turned in solid financial results for the 2013 second quarter,” said Jack Lipinski, chief executive officer. “Like other refiners, we are now seeing the impact of narrowing crack spreads and the higher cost of Renewable Identification Numbers, or RINs, needed to comply with the flawed U.S. Federal Renewable Fuel Standard. At the same time, the Coffeyville and Wynnewood refineries had strong operational performance with record level throughput rates at Wynnewood for the quarter.
“Last week we announced a $1.35 per common unit cash distribution, which brings our total cash distributions to $2.93 per common unit,” Lipinski said. “We remain focused on creating long-term value for our unitholders.
“Moving forward, we believe we are seeing the trough in Brent-WTI spreads as additional Midcontinent pipelines come into operation,” he continued. “Our view is the Brent-WTI spread will once again widen as additional shale-based crude is produced.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 51.32% from $1.52 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.87 to a profit $1.31. For the current year, the average estimate has moved down from a profit of $6.51 to a profit of $5.76 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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