Valero Energy Earnings Cheat Sheet: Revenue Strengthens for Fifth Straight Quarter by Double-Digits
S&P 500 (NYSE:SPY) component Valero Energy Corporation (NYSE:VLO) reported higher profit for the second quarter as revenue showed growth. Valero Energy Corporation is an independent refining and marketing company, which owns and operates refineries that produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, and lubricants.
Valero Energy Earnings Cheat Sheet for the Second Quarter
Results: Net income for Valero Energy Corporation rose to $745 million ($1.30 per share) vs. $583 million ($1.03 per share) in the same quarter a year earlier. This marks a rise of 27.8% from the year earlier quarter.
Revenue: Rose 43.7% to $31.29 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: VLO fell short of the mean analyst estimate of $1.51 per share. It beat the average revenue estimate of $28.44 billion.
Quoting Management: “Our earnings momentum continues to build,” said Valero Chairman and CEO Bill Klesse. “In the second quarter, refining industry margins and feedstock discounts in our markets expanded from the strong first-quarter levels as global refined product demand continued to grow. To take advantage of this demand growth, we increased refining throughput volumes to our highest utilization rate in three years – despite the impact of an apparent lightning strike to a critical motor at our Port Arthur Refinery in early June. Our entire organization is proud of our employees’ efforts to quickly mobilize and mitigate the negative impact at Port Arthur to only two weeks.”
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 24.6%, with the biggest boost coming in the most recent quarter when revenue rose 43.7% from the year earlier quarter.
The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 37 cents, and in the fourth quarter of the last fiscal year, it was ahead by 4 cents.
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).
(Source: Xignite Financials)