Valero Energy Corp Earnings Cheat Sheet: Increased Profit Helps Beat the Street

S&P 500 (NYSE:SPY) component Valero Energy Corporation (NYSE:VLO) reported net income above Wall Street’s expectations for the third quarter. Valero Energy is an independent refining and marketing company, which owns and operates refineries in the United States and Canada.

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Valero Energy Earnings Cheat Sheet for the Third Quarter

Results: Net income for the oil and gas refining and marketing company rose to $1.2 billion ($2.11 per share) vs. $292 million (51 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Rose 60.4% to $33.71 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: VLO beat the mean analyst estimate of $1.74 per share. It beat the average revenue estimate of $31.39 billion.

Quoting Management: “We achieved our best quarterly earnings per share since 2007,” said Valero Chairman and CEO Bill Klesse. “Our focus on improving operations and the competitiveness of our portfolio has produced solid financial results. We were able to capitalize on favorable refining margins and attain our highest refinery utilization since the third quarter of 2007.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 30.7%, with the biggest boost coming in the most recent quarter when revenue rose 51.8% from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of $1.30 versus a mean estimate of net income of $1.47 per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 75 cents a share to $1.07 over the last ninety days. The average estimate for the fiscal year is $4.32 per share, a rise from $3.59 ninety days ago.

Competitors to Watch: Tesoro Corporation (NYSE:TSO), Alon USA Energy, Inc. (NYSE:ALJ), Western Refining, Inc. (NYSE:WNR), Sunoco, Inc. (NYSE:SUN), CVR Energy, Inc. (NYSE:CVI), Frontier Oil Corporation (NYSE:FTO), Chevron Corporation (NYSE:CVX), Holly Corporation (NYSE:HOC), Delek US Holdings, Inc. (NYSE:DK), and Exxon Mobil Corporation (NYSE:XOM).

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(Source: Xignite Financials)