We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Phillips 66 (PSX) Q1 Earnings Beat, Revenues Lag Estimates
Read MoreHide Full Article
Phillips 66 (PSX - Free Report) posted adjusted first-quarter 2018 earnings of $1.04 per share that comfortably surpassed the Zacks Consensus Estimate of 91 cents. The bottom line increased from the year-ago quarter figure of 56 cents. Improved earnings from all its segments, except Refining, supported growth.
Quarterly revenues of $24 billion were higher than the year-ago quarter’s level of $23.7 billion. However, the top line missed the Zacks Consensus Estimate of $29.2 billion.
Segment Results
Midstream
The segment generated adjusted quarterly earnings of $233 million compared with $112 million in the year-ago quarter. Lower operating costs and taxes contributed to growth. It was partially offset by the impact of refinery turnarounds.
Chemicals
The segment generated adjusted earnings of $232 million compared with $181 million in the prior-year quarter. The upside was mainly driven by improved margins, higher volumes and lower taxes. Further, return of Cedar Bayou facility to full time operations contributed to growth.
Refining
The segment generated adjusted earnings of $91 million compared with $259 million in the prior-year quarter. Increased expenses due to intense turnaround activity and lower volumes led to the decline. During the quarter, Phillips 66’s refining utilization and clean product yields were 89% and 83%, respectively.
Marketing and Specialties (M&S)
Segmental earnings were $184 million, up from $141 million in the prior-year quarter.
Financial Condition
In the reported quarter, Phillips 66 generated $488 million in cash from operations. It also returned capital worth $3.8 billion to shareholders. Of this, $327 million was distributed as dividends, while $3.5 billion was used to repurchase shares of common stock.
As of Mar 31, 2018, the company had cash and cash equivalents of $842 million and debt of $11.6 billion. The company’s debt-to-capitalization ratio was 32%.
Q1 Price Performance
During the January-March quarter of 2018, Phillips 66’s shares lost 5.1% compared with industry’s decline of 2.6%.
Zacks Rank & Key Picks
Phillips 66 currently carries a Zacks Rank #3 (Hold).
Nine Energy Serviceis engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company posted a positive earnings surprise of 6.25% in the preceding quarter.
Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. It pulled off an average positive earnings surprise of 77.3% over the last three quarters.
Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% over the preceding four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Phillips 66 (PSX) Q1 Earnings Beat, Revenues Lag Estimates
Phillips 66 (PSX - Free Report) posted adjusted first-quarter 2018 earnings of $1.04 per share that comfortably surpassed the Zacks Consensus Estimate of 91 cents. The bottom line increased from the year-ago quarter figure of 56 cents. Improved earnings from all its segments, except Refining, supported growth.
Phillips 66 Price, Consensus and EPS Surprise
Phillips 66 Price, Consensus and EPS Surprise | Phillips 66 Quote
Quarterly revenues of $24 billion were higher than the year-ago quarter’s level of $23.7 billion. However, the top line missed the Zacks Consensus Estimate of $29.2 billion.
Segment Results
Midstream
The segment generated adjusted quarterly earnings of $233 million compared with $112 million in the year-ago quarter. Lower operating costs and taxes contributed to growth. It was partially offset by the impact of refinery turnarounds.
Chemicals
The segment generated adjusted earnings of $232 million compared with $181 million in the prior-year quarter. The upside was mainly driven by improved margins, higher volumes and lower taxes. Further, return of Cedar Bayou facility to full time operations contributed to growth.
Refining
The segment generated adjusted earnings of $91 million compared with $259 million in the prior-year quarter. Increased expenses due to intense turnaround activity and lower volumes led to the decline. During the quarter, Phillips 66’s refining utilization and clean product yields were 89% and 83%, respectively.
Marketing and Specialties (M&S)
Segmental earnings were $184 million, up from $141 million in the prior-year quarter.
Financial Condition
In the reported quarter, Phillips 66 generated $488 million in cash from operations. It also returned capital worth $3.8 billion to shareholders. Of this, $327 million was distributed as dividends, while $3.5 billion was used to repurchase shares of common stock.
As of Mar 31, 2018, the company had cash and cash equivalents of $842 million and debt of $11.6 billion. The company’s debt-to-capitalization ratio was 32%.
Q1 Price Performance
During the January-March quarter of 2018, Phillips 66’s shares lost 5.1% compared with industry’s decline of 2.6%.
Zacks Rank & Key Picks
Phillips 66 currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Nine Energy Service, Inc (NINE - Free Report) , BaytexEnergy Corp (BTE - Free Report) and EOG Resources Inc (EOG - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nine Energy Serviceis engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company posted a positive earnings surprise of 6.25% in the preceding quarter.
Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. It pulled off an average positive earnings surprise of 77.3% over the last three quarters.
Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% over the preceding four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>