HollyFrontier Corp Earnings: Here’s Why Investors Don’t Like These Results

HollyFrontier Corporation (NYSE:HFC) 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 down 2.81%.

HollyFrontier Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 41.42% to $1.40 in the quarter versus EPS of $2.39 in the year-earlier quarter.

Revenue: Rose 10.24% to $5.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: HollyFrontier Corporation reported adjusted EPS income of $1.40 per share. By that measure, the company missed the mean analyst estimate of $1.41. It beat the average revenue estimate of $4.55 billion.

Quoting Management: HollyFrontier’s President & CEO, Mike Jennings, commented, “Narrowing refined product margins and reduced throughputs contributed to a year-over-year decline in second quarter earnings. Coastal to inland crude differentials contracted significantly during the quarter, reducing crack spreads for inland refiners. Additionally, production levels were down due to planned and unplanned maintenance activities at our Tulsa, El Dorado and Cheyenne refineries. Although refining margins have come in from last year’s record highs, our margins remain healthy, and our outlook is positive. We believe that the favorable locations of our refineries relative to sources of crude oil production growth will continue to provide us with a feedstock advantage. Today’s $0.50 special and $0.30 regular dividend announcement demonstrates our ongoing commitment to increasing total shareholder return. Our current regular dividend yield is 2.6%, and our trailing twelve month cash dividend yield stands at 7.8% relative to yesterday’s closing price of $45.92.”

Key Stats (on next page)…

Revenue increased 12.55% from $4.71 billion in the previous quarter. EPS decreased 14.11% from $1.63 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 $1.83 to a profit $1.27. For the current year, the average estimate has moved down from a profit of $6.67 to a profit of $5.26 over the last ninety days.

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