Sunoco Earnings Cheat Sheet: High Oil Prices Hurt Quarterly Profits

S&P 500 (NYSE:SPY) component Sunoco Inc. (NYSE:SUN) reported its results for the first quarter. Sunoco, Inc., through its subsidiaries, is a petroleum refiner and marketer and chemicals manufacturer.

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Sunoco Earnings Cheat Sheet for the First Quarter

Results: Loss widened to $101 million (84 cents/diluted share) from $63 million or 53 cents per diluted share.

Revenue: Rose 30.3% to $10.64 billion YoY.

Actual vs. Wall St. Expectations: The mean estimate was a loss of 7 cents per share with a range of a loss of 32 cents per share to a profit of 30 cents per share.

Quoting Management: “The sharp rise in crude oil prices (NYSE:USO) created very challenging market conditions in the first quarter which, along with some significant operational reliability issues at two of our refineries, negatively impacted earnings. We have been aggressively focused on addressing the reliability issues,” said Lynn L. Elsenhans, Sunoco’s Chairman and Chief Executive Officer. “During the first quarter, we continued to make progress on growing our retail and logistics businesses and separating SunCoke Energy from Sunoco. We finished the quarter with approximately $1.5 billion in cash, which gives us strategic flexibility to further pursue our growth plans.”

Key Stats: SUN’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $87 million in the fourth quarter of the last fiscal year, a profit of $65 million in the third quarter of the last fiscal year and $145 million in the second of the last fiscal year.

Competitors to Watch: Valero Energy Corporation (NYSE:VLO), Western Refining, Inc. (NYSE:WNR), Alon USA Energy, Inc. (NYSE:ALJ), Holly Corporation (NYSE:HOC), Tesoro Corporation (NYSE:TSO), Delek US Holdings, Inc. (NYSE:DK), Calumet Specialty Products Partners, L.P (NASDAQ:CLMT), Murphy Oil Corporation (NYSE:MUR), CVR Energy, Inc. (NYSE:CVI), and Frontier Oil Corporation (NYSE:FTO)

Stock Performance: Shares of SUN are down 3.89% from today’s closing price of $40.06.


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