Phillips 66 (PSX) Q1 Earnings And Revenues Beat Estimates

Phillips 66 (NYSE:PSX) posted adjusted first-quarter 2017 earnings of 56 cents per share that comfortably surpassed the Zacks Consensus Estimate of 3 cents. The bottom line, however, deteriorated from the year-ago quarter figure of 67 cents. Increased earnings from all its segments supported growth.

Quarterly revenues of $23.7 billion were significantly higher than the year-ago quarter level of $17.8 billion. The top line also beat the Zacks Consensus Estimate of $22.3 billion.

Segment Results

Midstream

The segment generated adjusted quarterly earnings of $77 million compared with $65 million in the year-ago quarter. Lower maintenance costs and higher equity earnings contributed to the growth.

Chemicals

The segment generated adjusted earnings of $181 million as against $156 million in the comparable quarter last year. The upside was mainly driven by improved margins, higher volumes and lower operating costs.

Refining

The segment generated adjusted earnings of $259 million compared with $86 million in the prior-year quarter. Higher realized margins led to the improvement, partially offset by higher costs and lower volumes due to turnaround activity. During the quarter, Phillips 66’s refining utilization and clean product yields were at 84% and 85%, respectively.

Marketing and Specialties (M&S)

Segmental earnings were $141 million as against $205 million in the comparable quarter last year.

Financial Condition

In the reported quarter, Phillips 66 used $549 million of cash from operations. It also returned capital worth $611 million to shareholders. Of this, $326 million was distributed as dividends, while $285 million was used to repurchase shares of common stock.

As of Mar 31, 2017, the company had cash and cash equivalents of $1.5 billion and debt of $10.2 billion. The company’s debt-to-capitalization ratio was 30%.

Zacks Rank

Phillips 66 currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Diamond Offshore Drilling Inc. (NYSE:DO) , China Petroleum & Chemical Corporation (NYSE:SNP) and Bellatrix Exploration Ltd. (TO:BXE) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Diamond Offshore Drilling posted a positive earnings surprise of 341.67% in the preceding quarter. It beat estimates in all of the four trailing quarters with an average positive earnings surprise of 353.28%.

Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It beat estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.

Zacks' Hidden Trades

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?

Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.

Click here for Zacks' secret trade>>