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Valero Energy (VLO) to Post Q1 Earnings: What's in Store?

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Valero Energy Corporation (VLO - Free Report) is set to report first-quarter 2023 earnings on Apr 27, before the opening bell.

In the last reported quarter, the company’s earnings of $8.45 per share beat the Zacks Consensus Estimate of $7.45, owing to increased refinery throughput volumes and a higher refining margin.

In all the last four quarters, VLO’s earnings beat the Zacks Consensus Estimate, the average surprise being 19%. This is depicted in the graph below:

Valero Energy Corporation Price and EPS Surprise

Valero Energy Corporation Price and EPS Surprise

Valero Energy Corporation price-eps-surprise | Valero Energy Corporation Quote

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of $7.05 has witnessed four upward movements and one downward revision over the past 30 days. The estimated figure suggests a significant improvement from the prior-year reported number.

The Zacks Consensus Estimate for first-quarter revenues of $30.95 billion indicates a decline from the year-ago reported figure.

Factors to Note

In the United States, Valero Energy is a premier refining player. The diverse refining assets of VLO are centered around the prolific Gulf Coast area, which is highly profitable for the company. However, declining throughput volumes are likely to have hurt the firm. The Zacks Consensus Estimate for VLO’s total throughput volumes is pegged at 2,758 thousand barrels per day, suggesting a decline from 2,800 thousand barrels per day in a year-ago quarter. Our estimate for total throughput volumes is pegged at 2,706.6 thousand barrels per day, also indicating a year-over-year decline.

Earnings Whispers

Our proven model does not indicate an earnings beat for Valero 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. That is not the case here, as you will see below.

Earnings ESP: Valero Energy’s Earnings ESP is -0.66%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Stocks to Consider

Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Enterprise Products Partners L.P. (EPD - Free Report) currently has an Earnings ESP of +0.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for its earnings is pegged at 61 cents per share.

TechnipFMC plc (FTI - Free Report) currently has an Earnings ESP of +16.26% and a Zacks Rank #3.

TechnipFMC is scheduled to release first-quarter earnings on Apr 27. The Zacks Consensus Estimate for its earnings is pegged at 3 cents per share, suggesting an increase from the prior-year reported figure.

Magellan Midstream Partners LP has an Earnings ESP of +0.14% and is currently a Zacks #2 Ranked player.

Magellan Midstream is scheduled to release first-quarter results on May 04. The Zacks Consensus Estimate for its earnings is pegged at $1.18 per share, suggesting an increase from the prior-year reported figure.

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


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