Sunoco Inc. Earnings: Back to the Black

S&P 500 (NYSE:SPY) component Sunoco Inc. (NYSE:SUN) climbed to a profit in the first quarter and beat Wall Street’s expectations in the process. Sunoco, 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: Reported a profit of $248 million ($2.32 per diluted share) in the quarter. Sunoco Inc. had a net loss of $101 million or a loss 84 cents per share in the year-earlier quarter.

Revenue: Rose 16.1% to $12.32 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sunoco Inc. beat the mean analyst estimate of a loss of 6 cents per share. It beat the average revenue estimate of $6.5 billion.

Quoting Management: “Sunoco’s focus on the high-return logistics segment continues to bear fruit as Sunoco Logistics Partners L.P. had another excellent quarter and contributed $57 million in pretax income to Sunoco,” said Brian P. MacDonald, Sunoco’s president and chief executive officer. “Sharply rising crude prices pressured margins in Refining and Supply, as well as Retail Marketing, resulting in losses in both segments.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 25.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 30.4% from the year earlier quarter.

SUN’s profit in the latest quarter interrupts a three-quarter streak of losses. The company reported a net loss of $362 million in the fourth quarter of the last fiscal year, a loss of $1.1 billion in the third quarter of the last fiscal year and a loss of $125 million in the second of the last fiscal year.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 5 cents versus a mean estimate of a loss of 27 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 28 cents per share to 23 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $1.11 per share, the average estimate for the fiscal year has fallen from $1.45 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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