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Phillips 66 (PSX) Gears Up for Q4 Earnings: What's in Store?

Phillips 66 PSX is set to report fourth-quarter 2022 results on Jan 31, before the opening bell.

In the last reported quarter, the diversified energy manufacturing and logistics company’s adjusted earnings per share of $6.46 comfortably beat the Zacks Consensus Estimate of $4.98 on stronger refining margins worldwide.

Phillips 66 beat the Zacks Consensus Estimate for the bottom line in the trailing four quarters, delivering an earnings surprise of 28.1%, on average.

Let’s see how things have shaped up prior to the announcement.

Estimate Trend

The Zacks Consensus Estimate for Phillips 66’s fourth-quarter earnings per share of $4.34 has witnessed two upward revisions and five downward movements in the past 30 days. The consensus estimate suggests a year-over-year rise of 47.6%.

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The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $34.3 billion indicates a 2.2% improvement from the year-ago reported figure.

Factors to Note

In the December-end quarter of 2022, the demand for refined petroleum products improved significantly due to continued growth in fuel consumption. Being one of the world’s largest refiners, Phillips 66 is likely to have benefitted from higher demand for its refined petroleum products in the to-be-reported quarter.

The company is expected to have reaped the rewards of a better macro environment in its downstream business. As such, the Zacks Consensus Estimate for realized refining margin on a worldwide basis is pegged at $21.04 per barrel, indicating an increase from the year-ago reported level of $11.60 per barrel. This is likely to have positioned Phillips 66 for huge profits in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Phillips 66 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. As you can see, that is not the case here.

Earnings ESP: Phillips 66 has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate both are currently pegged at earnings of $4.34 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks That Warrant a Look

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

PBF Energy Inc. PBF currently has an Earnings ESP of +9.17% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

PBF Energy is scheduled to report fourth-quarter results on Feb 16. The Zacks Consensus Estimate for its earnings is pegged at $4.49 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

Sunoco LP SUN has an Earnings ESP of +5.13% and currently flaunts a Zacks Rank of 1.

Sunoco is scheduled to report fourth-quarter results on Feb 15. The Zacks Consensus Estimate for SUN’s earnings is pegged at 78 cents per share, suggesting a decline from the prior-year quarter’s reported figure.

Patterson-UTI Energy PTEN has an Earnings ESP of +5.53% and sports a Zacks Rank #1 at present.

Patterson-UTI Energy is scheduled to release earnings on Feb 8. The Zacks Consensus Estimate for PTEN’s earnings is pegged at 43 cents 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report

Sunoco LP (SUN) : Free Stock Analysis Report

Phillips 66 (PSX) : Free Stock Analysis Report

PBF Energy Inc. (PBF) : Free Stock Analysis Report

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