Yahoo Finance Phillips 66’s 1Q16 Earnings Are Lower than Estimated
Phillips 66's 1Q16 Earnings Miss the Estimates
Phillips 66’s 1Q16 estimated and actual performance
Phillips 66 (PSX) posted its 1Q16 results on April 29, 2016. Before we proceed with the earnings review, let’s quickly examine PSX’s 1Q16 performance versus its estimates.
In 1Q16, PSX’s revenues missed Wall Street analysts’ estimates. Plus, its 1Q16 adjusted earnings per share (or EPS) stood at $0.67, around 24% lower than its estimated EPS of $0.88. Also, the company’s 1Q16 EPS was 56% lower than its 1Q15 adjusted EPS. PSX’s refining margins fell in 1Q16 compared to 1Q15.
Phillips 66’s 1Q16 earnings review
In 1Q16, PSX’s adjusted net income of $360 million fell by 57% compared to 1Q15. The fall was led by the Midstream, Chemicals, and Refining segments. This was partially offset by a rise in adjusted income from the marketing segment.
Phillips 66’s (PSX) Refining margins fell by 42% over 1Q15 to $7.10 per barrel in 1Q16. Adjusted income from PSX’s Refining segment fell by 83% in 1Q15 to $86 million in 1Q16. Additionally, the adjusted income from its Midstream and Chemical segments fell by 40% and 23%, respectively, in 1Q16 compared to 1Q15. However, the company’s adjusted income from its Marketing segment rose by 6% in 1Q15 to $205 million in 1Q16.
PSX’s peer CVR Refining (CVRR) has reported a loss in 1Q16. Alon USA Energy (ALJ), according to Wall Street analyst estimates, is expected to post a loss in 1Q16. Northern Tier Energy (NTI) and Western Refining (WNR) are expected to post 90% and 86% lower EPS in 1Q16 over 1Q15, respectively.
For exposure to refining sector stocks, you can consider the Vanguard Energy ETF (VDE). VDE has 10% exposure to the sector.
Browse this series on Market Realist:
