Delek US Holdings Earnings: Here’s Why the Stock is Up Now

Delek US Holdings Inc. (NYSE:DK) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.36%.

Delek US Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 33.33% to $0.78 in the quarter versus EPS of $1.17 in the year-earlier quarter.

Revenue: Rose 5.29% to $2.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Delek US Holdings Inc. reported adjusted EPS income of $0.78 per share. By that measure, the company missed the mean analyst estimate of $0.79. It beat the average revenue estimate of $1.99 billion.

Quoting Management: “During the second quarter, we benefited from our focus on continuous improvement in our operations as we increased our throughput rate at our Tyler refinery to a record level. In addition, our logistics segment performed well and continued to benefit from increases in the price of RINs,” said Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US. “We completed our strategic initiative to improve our crude slate flexibility by increasing pipeline access to Midland sourced crude at both refineries and adding crude by rail sourcing capacity at our El Dorado refinery. With the new pipeline access in place, we now have access to 87,000 barrels per day of Midland crude out of our 140,000 barrels per day capacity. In July, we took another step toward further unlocking the value of our logistics assets through the first drop-down to Delek Logistics since the IPO last year. Our balance sheet remains strong giving us the ability to continue investing in our business while returning value to our shareholders.”

Key Stats (on next page)…

Revenue decreased 3.34% from $2.32 billion in the previous quarter. EPS decreased 39.06% from $1.28 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 $1.32 to a profit $0.75. For the current year, the average estimate has moved down from a profit of $4.64 to a profit of $3.15 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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