Yahoo Finance Is a Beat in Store for PBF Energy (PBF) in Q3 Earnings?
PBF Energy Inc. PBF is set to report its third-quarter 2023 earnings results on Nov 2 before the opening bell.
In the last reported quarter, earnings of $2.29 per share of the leading independent refiner in North America beat the Zacks Consensus Estimate of earnings of $2.22, owing to lower costs and expenses. The positives were partially offset by a lower gross refining margin per barrel of throughput, and declining crude oil and feedstock throughput volumes.
In the trailing four quarters, PBF Energy’s earnings beat the Zacks Consensus Estimate thrice and missed the same once, the average being 8.3%. This is depicted in the graph below:
PBF Energy Inc. Price and EPS Surprise
PBF Energy Inc. price-eps-surprise | PBF Energy Inc. Quote
Let’s delve into the factors that are likely to have influenced the company’s performance in the September-end quarter.
The Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share of $4.62 has witnessed seven upward revisions and no downward movement over the past 30 days. The estimate suggests a 42% decline from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for third-quarter revenues of $9.8 billion indicates a 23% decline from the year-ago quarter’s reported figure.
What the Quantitative Model Suggests
Our proven model conclusively predicts an earnings beat for PBF Energy this time around. 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, which is exactly the case here.
Earnings ESP: PBF Energy has an Earnings ESP of +2.74%. This is because the Most Accurate Estimate is pegged at earnings of $4.75 per share, whereas the Zacks Consensus Estimate is pinned at earnings of $4.62 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PBF Energy currently flaunts a Zacks Rank #1.
Factors to Consider
Gasoline price was much higher in the third quarter than a year ago. The refining capacity to process oil into end products like gasoline was insufficient to support the heightened fuel demand, thus elevating fuel prices. Being one of the largest independent petroleum refiners, PBF Energy is likely to have benefited from increased fuel prices.
The Zacks Consensus Estimate for the company’s refined products production from the East Coast is pegged at 324 thousand barrels per day (bpd), suggesting an improvement from the 315 thousand bpd reported in the year-ago quarter. Our estimate for the metric in the third quarter is pegged at 343.7 thousand bpd, indicating an improvement from the year-ago quarter’s actual.
PBF Energy is anticipated to have a favorable effect on its financial performance for the third quarter, primarily attributed to decreasing expenses. In the second quarter, the company reported total expenses of $7.8 billion, marking a significant reduction of 37.2% from the previous year. This cost reduction trend is expected to have persisted in the third quarter. We expect the metric to decline 29.7% year over year in the third quarter.
Other Stocks to Consider
Here are some other firms worth considering, as these, too, have the right combination of elements to beat on earnings in their upcoming quarterly results:
EOG Resources, Inc. EOG currently has an Earnings ESP of +1.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.95 per share, suggesting a decline from the year-ago reported figure.
Cenovus Energy Inc. CVE has an Earnings ESP of +6.53% and a Zacks Rank #3 at present.
The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for CVE’s earnings is pegged at 59 cents per share, suggesting a decline from the prior-year reported figure.
Devon Energy Corp. DVN has an Earnings ESP of +0.72% and is currently a Zacks #2 Ranked player.
The company is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for DVN’s earnings is pegged at $1.55 per share, suggesting a decline from the year-ago actual.
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PBF Energy Inc. (PBF) : Free Stock Analysis Report
