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

·3-min read

Phillips 66 PSX is set to report fourth-quarter 2021 results on Jan 28 before the opening bell.

In the last reported quarter, Phillips 66 beat the Zacks Consensus Estimate for the bottom line on recovered refined product and fuel demand. Phillips 66 surpassed the Zacks Consensus Estimate in three of the last four quarters, the average being 19.7%.

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

Trend in Estimate Revisions

The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.93 has witnessed one downward revision and three upward revisions in the past 30 days. The estimated figure suggests an improvement of 266.4% from the prior-year reported number.

The consensus estimate for fourth-quarter revenues of $22.5 billion indicates a 34.1% improvement from the year-ago reported figure.

Factors to Consider

Fuel demand improved drastically in the December quarter of 2021 as compared with the prior-year comparable period due to the rolling out of COVID-19 vaccines at a massive scale. As people started going to the office and traveling, demand for gasoline improved significantly.

Phillips 66, a diversified oil refiner, is likely to have capitalized on the mounting demand for petroleum products. The Zacks Consensus Estimate for PSX’s fourth-quarter adjusted pre-tax earnings from the refining segment is pegged at $81 million, suggesting a turnaround from the year-ago quarter’s loss of $1,094 million.

Earnings Whispers

Our proven model does not indicate an earnings beat for Phillips 66 this time. 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. However, that is not the case here as you will see below.  

Earnings ESP: Phillips 66’s Earnings ESP is -0.91%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Zacks Rank: PSX currently carries a Zacks Rank #2.

Stocks to Consider

Here are a few 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:

PBF Energy Inc. PBF has an Earnings ESP of +253.12% and is a Zacks #3-Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

PBF Energy is scheduled to release fourth-quarter results on Feb 10. The Zacks Consensus Estimate for PBF’s earnings is pegged at 11 cents per share, suggesting an increase of 102.4% from the prior-year reported figure.

Viper Energy Partners VNOM has an Earnings ESP of +12.82% and a Zacks Rank of 3.

Viper Energy is scheduled to report fourth-quarter results on Feb 22. The Zacks Consensus Estimate for Viper Energy’s earnings is pegged at 20 cents per unit, suggesting an improvement of 66.7% as compared with the prior-year reported figure.

Royal Dutch Shell (RDS.A) has an Earnings ESP of +0.96% and a Zacks Rank #1.

Royal Dutch Shell is scheduled to release fourth-quarter earnings on Feb 3. The Zacks Consensus Estimate for RDS.A’s earnings is pegged at $1.39 per share, suggesting a massive year-over-year improvement.

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
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
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