Phillips 66 (NYSE: PSX) reported second-quarter earnings of $1.86 per share and $47.83 billion in revenue before markets opened this morning. Earnings per share (EPS) rose from the year-ago total of $1.64, and revenue fell from last year’s second-quarter total of $52.59 billion by 9%. On an adjusted basis, EPS came in at $2.23. The results compare to the Thomson Reuters consensus estimates for EPS of $1.78 and $45.78 billion in revenue.
The oil refining and marketing company offered no additional guidance. The current consensus estimate for the third quarter calls for EPS of $1.54, as well as full-year EPS of $5.21 on full-year revenue of $186.29 billion. The company previously announced a $1 billion share repurchase program.
The company’s chairman and CEO referred to the company’s recent spin-off from ConocoPhillips (NYSE: COP):
We’re off to a solid start, running well in a positive margin environment. The location of our domestic refining, midstream and chemicals facilities enabled us to access advantaged feedstocks, creating strong earnings and cash flow.
Phillips 66 sold assets worth $234 million in the quarter, including its refinery in Trainer, Penn. In the company’s refining and marketing segment, revenue rose nearly 53%, chiefly due to much better refining margins in the U.S. Midwest and in Europe. In the not-so-good news department, the company took a noncash charge of $170 million on its investment in the Rockies Express pipeline, causing the company’s midstream segment to report a loss of $91 million for the quarter.
Shares are up more than 5% in premarket trading at $39.50, a new post-IPO high if it holds during the trading day. The current 52-week range is $28.75 to $38.36. Thomson Reuters had a consensus analyst price target of $42.90 before today’s results were announced.
Paul Ausick
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
