Phillips 66 (NYSE:PSX) posted adjusted third-quarter 2016 earnings of $1.05 per share that beat the Zacks Consensus Estimate of 89 cents. The bottom line, however, declined from the year-ago quarter level of $3.02 per share. Lackluster performance by all the company’s segments contributed to the decline.
Quarterly revenues of $22 billion came in below the Zacks Consensus Estimate of $25.5 billion. Revenues also decreased from the year-ago quarter level of $26.4.
Segmental Results
Midstream
The segment generated adjusted quarterly earnings of $75 million compared with $101 million in the year-ago quarter.
Chemicals
The segment reported adjusted earnings of $101 million as against $252 million in the comparable year-earlier quarter. Higher unplanned downtime led to the decrease.
Refining
The segment’s adjusted earnings were $177 million compared with earnings of $1,003 million in the prior-year quarter. Higher planned turnaround expenses led to the decline. During the quarter, Phillips 66’s refining utilization was 97% and clean product yield was 84%.
Marketing and Specialties (M&S)
This segment recorded earnings of $267 million compared with $338 million in the comparable year-ago quarter.
PHILLIPS 66 Price, Consensus and EPS Surprise
PHILLIPS 66 Price, Consensus and EPS Surprise | PHILLIPS 66 Quote
Financial Condition
In the reported quarter, Phillips 66 generated $883 million of cash from operations. It also returned capital worth $508 million to shareholders.
As of Sep 30, 2016, the company’s cash and cash equivalents of $2.3 billion and debt of $8.9 billion. The company’s debt-to-capitalization ratio was 27%.
Zacks Rank
Currently, Phillips 66 carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (NYSE:EVA) , W&T Offshore Inc (NYSE:WTI) and Boardwalk Pipeline Partners, LP (NYSE:BWP) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
W&T Offshore posted a positive earnings surprise of 29.85% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
In the last reported quarter, Boardwalk Pipeline Partners delivered a positive earnings surprise of 44.44%. Coming to the earnings surprise history, the partnership beat estimates in all of the last four quarters.
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