Valero Energy Corp Earnings: Two Straight Quarters of Profit Broken by a Loss

S&P 500 (NYSE:SPY) component Valero Energy Corporation (NYSE:VLO) swung to a loss in the first quarter, missing analysts’ forecast. 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 First Quarter

Results: Reported a loss of $432 million (78 cents per diluted share) in the quarter. Valero Energy Corporation had a net income of $98 million or 17 cents per share in the year-earlier quarter.

Revenue: Rose 33.7% to $35.17 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Valero Energy Corporation fell short of the mean analyst estimate of 29 cents per share. It beat the average revenue estimate of $26.81 billion.

Quoting Management: “Given the high level of turnarounds and maintenance in the first quarter, we performed well and continued to execute our strategy,” said Valero Chairman and CEO Bill Klesse. “We improved our refining system by starting the two hydrogen plants at McKee and Memphis, and we continued to advance our large projects. We also continued to work on our reliability with the extensive turnarounds that occurred in the first quarter, the recent replacement of the coker drums at St. Charles, and the McKee cat-cracker turnaround that is in progress.”

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 49.9%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 86.4% from the year earlier quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 4 cents, and in the third quarter of the last fiscal year, it was ahead by 37 cents.

VLO ended a three-quarter streak of profits when it reported a loss in the latest quarter. The company reported a profit of $45 million in the fourth quarter of the last fiscal year, a profit of $1.2 billion in the third quarter of the last fiscal year and $744 million in the second of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to $1.42 per share from $1.21. For the fiscal year, the average estimate has moved up from $3.53 a share to $3.74 over the last ninety days.

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

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