Sunoco Inc. Earnings Cheat Sheet: Swinging to a Loss

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

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Sunoco Earnings Cheat Sheet for the Third Quarter

Results: Reported a loss of $1.1 billion ($9.62 per diluted share) in the quarter. The oil and gas refining and marketing company had net income of $65 million or 54 cents per share in the year earlier quarter.

Revenue: Rose 32% to $12.16 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SUN reported adjusted net income of 57 cents per share. By that measure, the company fell short of mean estimate of 60 cents per share. It beat the average revenue estimate of $8.62 billion.

Quoting Management: “A second straight quarter of record earnings at Sunoco Logistics Partners L.P. and good results in retail were the primary drivers of Sunoco’s profitability from operations in the third quarter. These segments contributed $53 million and $48 million in pretax income, respectively,” said Lynn L. Elsenhans, Sunoco’s chairman and chief executive officer. “Market conditions continue to pose challenges for our refining and supply segment and, while the refineries’ operational performance improved during the third quarter with crude utilization averaging 90 percent, the segment reported another loss. We remain focused on running our assets safely and reliably at economic utilization rates.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 25.3% to $12 billion in the second quarter. The figure rose 29.9% in the first quarter from the year earlier and climbed 14.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 9 cents in the second quarter and by 96 cents in the first quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 25 cents per share, down from 41 cents ninety days ago. At 21 cents per share, the average estimate for the fiscal year has fallen from 81 cents ninety days ago.

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).

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(Source: Xignite Financials)