Valero Energy Earnings: Best Fourth Quarter Since 2005

Valero Energy Corp. (NYSE:VLO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8.66%.

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Valero Energy Corp. Earnings Cheat Sheet

Results: Net income increased 2144.44% to $1.01 billion ($1.82 per diluted share) in the quarter versus a net gain of $45 million in the year-earlier quarter.

Revenue: Rose 0.08% to $34.7 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Valero Energy Corp. reported adjusted net income of $1.82 per share. By that measure, the company beat the mean analyst estimate of $1.18. It beat the average revenue estimate of $31.01 billion.

Quoting Management:This was Valero’s best fourth-quarter earnings per share since 2005, and we made important progress on our strategic goals,” said Valero Chairman and CEO Bill Klesse.  “In the fourth quarter, we had a smooth start-up of our new hydrocracker at the Port Arthur refinery, which was the largest project in Valero’s history…

…We also continued construction on our St. Charles hydrocracker, which is scheduled for start-up in the second quarter of 2013.  We believe these projects are perfectly suited for the current environment of strong distillate margins and inexpensive natural gas.”

Key Stats:

Revenue decreased 0.07% from $34.73 billion in the previous quarter. Net income increased 49.85% from $674 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.91 to a profit $0.81. For the current year, the average estimate has moved up from a profit of $4.49 to a profit of $4.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)