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PBF Energy (PBF) to Post Q4 Earnings: Key Things to Consider

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PBF Energy Inc. (PBF - Free Report) is set to report its fourth-quarter 2022 earnings results on Feb 16, before the opening bell.

In the last reported quarter, the leading independent refiner in North America’s earnings of $7.96 per share comfortably beat the Zacks Consensus Estimate of earnings of $6.03, owing to increased contributions from the Refining segment.

PBF Energy’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 48.97%. This is depicted in the graph below:

PBF Energy Inc. Price and EPS Surprise

 

PBF Energy Inc. Price and EPS Surprise

PBF Energy Inc. price-eps-surprise | PBF Energy Inc. Quote

Let’s delve into the factors that are likely to have influenced the company’s performance in the December-end quarter.

The Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings per share of $4.95 has witnessed no upward revision and three downward movements over the past 30 days. The estimate figure suggests a massive improvement from the prior-year quarter’s reported figure.

Similarly, the Zacks Consensus Estimate for fourth-quarter revenues of $9.7 billion indicates a 17.7% increase from the year-ago quarter’s reported figure.

What the Quantitative Model Suggests

Our proven model conclusively predicts an earnings beat for PBF Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here.

Earnings ESP: PBF Energy has an Earnings ESP of +4.45%. This is because the Most Accurate Estimate is pegged at earnings of $5.17 per share, whereas the Zacks Consensus Estimate is pinned at earnings of $4.95 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PBF Energy currently carries a Zacks Rank #2.

Factors Driving Better-Than-Expected Earnings

Gasoline price was much higher in the fourth quarter than a year ago on demand recovery. The refining capacity to process oil into end products like gasoline was insufficient to support the heightened fuel demand, thus elevating fuel prices. Hence, PBF Energy, one of the largest independent petroleum refiners, is likely to have benefited from increased fuel prices.

The Zacks Consensus Estimate for PBF Energy’s income (loss) from operations from the refining business is pegged at $876 million, suggesting an improvement from the $324 million reported in the year-ago quarter. Our estimate for the metric in the fourth quarter is pegged at $708.3 million, also suggesting an improvement from the year-ago quarter’s actuals.

Other Stocks to Consider

Here are some other firms worth considering, as these too have the right combination of elements to beat on earnings in their upcoming quarterly results:

Denbury Inc.  has an Earnings ESP of +3.73% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Denbury is scheduled to release fourth-quarter results on Feb 23. The Zacks Consensus Estimate for DEN’s earnings is pegged at $1.61 per share, suggesting an increase from the prior-year quarter’s reported figure.

Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank of 3.

Northern Oil and Gas is scheduled to report fourth-quarter results on Feb 23. The Zacks Consensus Estimate for NOG’s earnings is pegged at $1.65 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

Cheniere Energy, Inc. (LNG - Free Report) has an Earnings ESP of +18.82% and a Zacks Rank #3.

LNG is scheduled to report its fourth-quarter earnings on Feb 23. The Zacks Consensus Estimate for Cheniere Energy’s earnings is pegged at $6.87 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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