Valero Energy Earnings: Here’s Why the Stock is Down Now

Valero Energy Corp. (NYSE:VLO) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.09%.

Valero Energy Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 40% to $0.90 in the quarter versus EPS of $1.50 in the year-earlier quarter.

Revenue: Decreased 1.81% to $34.03 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Valero Energy Corp. reported adjusted EPS income of $0.90 per share. By that measure, the company missed the mean analyst estimate of $0.93. It beat the average revenue estimate of $30.18 billion.

Quoting Management: “Valero performed well financially given the margin environment and maintenance activities,” said Valero Chairman and CEO Bill Klesse. “We also returned $364 million in cash to our stockholders through dividends and stock buybacks in the second quarter. On May 1, we spun off 80 percent of the outstanding equity in CST Brands to our stockholders. We also entered into long-term supply agreements with CST Brands, and they became Valero`s largest wholesale marketing customer.”

Key Stats (on next page)…

Revenue increased 1.67% from $33.47 billion in the previous quarter. EPS decreased 23.73% from $1.18 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 $1.84 to a profit $1.35. For the current year, the average estimate has moved down from a profit of $5.49 to a profit of $4.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]