Canada markets closed
  • S&P/TSX

    19,779.97
    -11.65 (-0.06%)
     
  • S&P 500

    4,320.06
    -9.94 (-0.23%)
     
  • DOW

    33,963.84
    -106.58 (-0.31%)
     
  • CAD/USD

    0.7418
    -0.0001 (-0.02%)
     
  • CRUDE OIL

    90.33
    +0.70 (+0.78%)
     
  • Bitcoin CAD

    35,850.69
    -14.36 (-0.04%)
     
  • CMC Crypto 200

    565.87
    -2.18 (-0.38%)
     
  • GOLD FUTURES

    1,944.90
    +5.30 (+0.27%)
     
  • RUSSELL 2000

    1,776.50
    -5.32 (-0.30%)
     
  • 10-Yr Bond

    4.4380
    -0.0420 (-0.94%)
     
  • NASDAQ

    13,211.81
    -12.18 (-0.09%)
     
  • VOLATILITY

    17.20
    -0.34 (-1.94%)
     
  • FTSE

    7,683.91
    +5.29 (+0.07%)
     
  • NIKKEI 225

    32,402.41
    -168.62 (-0.52%)
     
  • CAD/EUR

    0.6965
    +0.0008 (+0.11%)
     

Is a Beat in Store for PBF Energy (PBF) in Q1 Earnings?

PBF Energy Inc. PBF is set to report its first-quarter 2023 earnings results on May 5 before the opening bell.

In the last reported quarter, the leading independent refiner in North America’s earnings of $4.41 per share missed the Zacks Consensus Estimate of earnings of $4.95, owing to lower contributions from the Logistics segment, and higher costs and expenses. The negatives were partially offset by higher contributions from the Refining segment.

In the trailing four quarters, PBF Energy’s earnings beat the Zacks Consensus Estimate thrice and missed the same once, the average being 24.9%. This is depicted in the graph below:

PBF Energy Inc. Price and EPS Surprise

 

PBF Energy Inc. Price and EPS Surprise
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 March-end quarter.

The Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings per share of $2.38 has witnessed two upward revisions and four downward movements over the past 30 days. The estimate figure suggests a massive improvement from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for first-quarter revenues of $8.6 billion indicates a 6.1% 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 +7.07%. This is because the Most Accurate Estimate is pegged at earnings of $2.55 per share, whereas the Zacks Consensus Estimate is pinned at earnings of $2.38 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 carries a Zacks Rank #3.

Factors to Consider

Gasoline price was much higher in the first quarter than a year ago on demand recovery. 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 PBF Energy’s income (loss) from operations from the refining business is pegged at $591 million, suggesting an improvement from the $146 million reported in the year-ago quarter. Our estimate for the metric in the first quarter is pegged at $708.7 million, also suggesting an improvement from the year-ago quarter’s actuals.

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:

Magellan Midstream Partners LP MMP has an Earnings ESP of +0.70% and is currently a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magellan Midstream is scheduled to release first-quarter results on May 4. The Zacks Consensus Estimate for its earnings is pegged at $1.21 per share, suggesting an increase from the prior-year reported figure.

ConocoPhillips COP has an Earnings ESP of +0.13% and a Zacks Rank #3 at present.

ConocoPhillips is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.02 per share, implying a decline from the prior-year reported figure.

EOG Resources Inc. EOG has an Earnings ESP of +0.74% and a Zacks Rank #3 at present.

EOG Resources is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.42 per share, indicating a decline from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ConocoPhillips (COP) : Free Stock Analysis Report

Magellan Midstream Partners, L.P. (MMP) : Free Stock Analysis Report

EOG Resources, Inc. (EOG) : Free Stock Analysis Report

PBF Energy Inc. (PBF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research