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Valero Energy (VLO) Beats on Q2 Earnings & Revenues

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An Earnings Beat: Valero Energy Corporation (VLO - Free Report) reported second quarter income per share of $2.15, higher than the Zacks Consensus Estimate of $2.00. Higher throughput margin owing to 93% throughput capacity utilization supported Valero Energy’s strong second-quarter results.

Estimate Revision Trend & Surprise History: Investors should note that the Zacks Consensus Estimate has seen one upward revision and no downward revisions in the last seven days.
 

Nonetheless, Valero has an impressive earnings surprise history. Before posting the earnings beat in Q2, the company delivered positive surprises in all prior four quarters. Overall, the company has a positive earnings surprise of 8.8% in the trailing four quarters.

Revenues: Valero posted revenues of $31,015 million, beating the Zacks Consensus Estimate of $28,446 million. Also, it compared favorably with the year-ago number of $22,254 million.

Key Stats: During the quarter, refining throughput volumes were approximately 2.89 million barrels per day, down from 3.02 million barrels per day in the year-earlier quarter but surpassed the Zacks Consensus Estimate of 2.88 million barrels per day.

By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 45%, 15% and 16.6%, respectively. The remaining volumes came from residuals, other feedstock, blendstocks and others.

Refining margin per barrel of throughput increased to $10.80 per barrel from the year-ago level of $8.66 per barrel.

Zacks Rank: Currently, Valero carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank stocks here)

Check back later for our full write up on this Valero earnings report later!

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