An Earnings Miss: Leading downstream operator Marathon Petroleum Corporation (NYSE:MPC) reported earnings per share of 8 cents, lower than the Zacks Consensus Estimate of 14 cents.
Estimate Revision Trend & Surprise History: While the Zacks Consensus Estimate for the quarter has been unchanged in the last seven days, the stock had seen the Zacks Consensus Estimate for first-quarter earnings being revised 65.9% downward over the last month.
Marathon Petroleum Corporation Price and EPS Surprise
Marathon Petroleum Corporation Price and EPS Surprise | Marathon Petroleum Corporation Quote
Nonetheless, Marathon Petroleum has a good earnings surprise history. Before posting the earnings miss in Q1, the company delivered positive surprises in three of the prior four quarters, as shown in the chart below:
Overall, the company has a positive earnings surprise of 182.62% in the trailing four quarters.
Revenue Came in Lower than Expected: Marathon Petroleum posted revenues of $18,984 million, below the Zacks Consensus Estimate of $22,390 million.
Key Stats: Operating loss from the Refining & Marketing segment was $133 million compared with the loss of $70 million in the year-ago quarter.
Total refined product sales volumes were 2,275 thousand barrels per day (mbpd), up from the 2,085 mbpd in the year-ago quarter. Moreover, throughput improved from 1,708 mbpd in the year-ago quarter to 1,905 mbpd.
Income from the Speedway retail stations totaled $95 million, 29.6% below the year-ago period.
Finally, Midstream segment profitability was $567 million, up from $309 million in the first quarter of 2017.
Andeavor Acquisition: Yesterday, Marathon Petroleum announced that it has agreed to buy rival Andeavor (NYSE:ANDV) for $23.3 billion. Should the deal go through, it will create the largest independent American oil refiner by capacity.
Zacks Rank: Currently, Marathon Petroleum carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. While things apparently don’t 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 (Strong Buy) stocks here.)
Check back later for our full write up on this Marathon Petroleum earnings report later!
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