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Phillips 66 (PSX) to Report Q2 Earnings: What's in the Cards?

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Phillips 66 (PSX - Free Report) is expected to report second-quarter 2018 results on Jul 27, before market opens.

The leading refining player has an impressive earnings surprise history. Phillips 66 beat the Zacks Consensus Estimate in all of the trailing four quarters, the average positive earnings surprise being 12%.

Let’s see how things are shaping up for this announcement.    
 

Phillips 66 Price and EPS Surprise

 

Phillips 66 Price and EPS Surprise | Phillips 66 Quote

Which Way are Estimates Treading?

Let’s look at the estimate revisions to get a clear picture of what analysts are thinking about the company before earnings release.

The Zacks Consensus Estimate of $2.15 for the second quarter has seen two upward and no downward revision by firms in the last seven days. The figure reflects year-over-year growth of 97.3%.

The Zacks Consensus Estimate for revenues is pegged at $29,404 million for the impending quarter, indicating a rise of 19.6% year over year.

Factors Likely to Influence Q2 Earnings

Phillips 66 is the leading player in its operations that include refining, chemicals and midstream in terms of size, efficiency as well as strengths. The company is on track to enhance its potential in every business segment by streamlining portfolio of assets and investing in growth developments.

However, since 2014, there has been considerable rise in long-term debt with little sign of decline, which indicates the company’s weak balance sheet.

Q2 Price Performance

During the quarter, Phillips 66’s shares have outperformed the industry. The company’s shares gained 17.1% compared with the industry’s 13.9% rise.



 

Earnings Whisper

Our proven model does not conclusively show that Phillips 66 is likely to beat earnings this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: Earnings ESP for the company is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.15. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Phillips 66 carries a Zacks Rank #3.

Please note that we caution investors against stocks with a Zacks Rank #4 or5 (Sell Rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks Poised to Beat Estimates

Here are a few firms that you may want to consider on the basis of our model. These have the right combination of elements to beat estimates this quarter.

ConocoPhillips (COP - Free Report) , based in Houston, TX, is a major global exploration and production (E&P) company. The company has an Earnings ESP of +5.09% and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Occidental Petroleum Corporation (OXY - Free Report) is an international oil and gas exploration and production company. The company has an Earnings ESP of +2.51% and carries a Zacks Rank #2.

Houston, TX-based EOG Resources, Inc (EOG - Free Report) is a major independent oil and gas exploration and production company. The company has an Earnings ESP of +1.36% and a Zacks Rank #3.

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