Valero Energy Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Valero Energy (NYSE:VLO) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Valero Energy is an independent refining and marketing company, which owns and operates refineries in the United States and Canada.

Valero Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.17 per share, up from net loss of 21 cents in the year-earlier quarter. During the past three months, the average estimate has moved up from $1. Between one and three months ago, the average estimate moved up. It has risen from $1.06 during the last month. Analysts are projecting profit to rise by 21.4% compared to last year’s $4.87.

Past Earnings Performance: Last quarter, the company beat estimates by 15 cents, coming in at net income of $1.90 a share versus the estimate of profit of $1.75 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit fell 44% to $674 million ($1.21 a share) from $1.2 billion ($2.11 a share) the year earlier, but exceeded analyst expectations. Revenue rose 3% to $34.73 billion from $33.71 billion.

Here’s how Valero Energy traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

vlo

Wall St. Revenue Expectations: Analysts are projecting a decline of 10.6% in revenue from the year-earlier quarter to $31.01 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.33 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.3 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 15.9% to $16.27 billion while liabilities rose by 13.5% to $12.25 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 86.4% in the fourth quarter of the last fiscal year, 33.7% in the first quarter and 10.8% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With 10 analysts rating the stock a buy, one rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

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