- Valero Energy reported a fourth-quarter adjusted earnings per share (EPS) of 64 cents, significantly beating the estimate of 7.6 cents, but down from $3.55 in the same period last year.
- The company’s revenue for the quarter was $30.76 billion, representing a 13% decrease year-over-year, yet it surpassed the estimate of $28.92 billion.
- Total throughput remained steady at 2,995 thousand barrels per day, matching the figures from last year and exceeding the estimate of 2.93 million.
- Adjusted refining operating income per barrel of throughput was $1.60, a 72% decline from the previous year.
- The Gulf Coast refining margin was $1.41 billion, reflecting a 28% drop year-over-year, but it still exceeded the estimate of $1.31 billion.
- Mid-Continent refining margin came in at $303 million, a 24% decrease from last year, yet higher than the estimated $265 million.
- North Atlantic refining margin was $472 million, down 44% year-over-year, but above the estimate of $394.8 million.
- The West Coast refining margin was $139 million, demonstrating a 61% drop from the previous year, slightly below the estimate of $147.6 million.
- Cash flow from operations was $1.07 billion, showing a 14% decline year-over-year, but surpassing the estimate of $790.4 million.
- The refining margin per barrel averaged $8.44, 35% less than last year, yet exceeded the estimate of $7.83.
- Analyst ratings included 15 buys, 5 holds, and 2 sells.
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Valero Energy on Smartkarma
In recent analyst coverage on Smartkarma, Baptista Research delved into Valero Energy Corporation’s financial performance for the third quarter of 2024. The earnings report highlighted a mixed set of results influenced by significant maintenance activities and a challenging margin environment. Despite these challenges, Valero’s refineries operated at 90% of their throughput capacity, in line with previous guidance, showing resilience in the face of adversities.
Another analyst, Value Investors Club, showcased Valero as a top performer in the oil refining industry with consistent growth since its IPO in 1997. Despite industry cyclicality, Valero has demonstrated strength during stock price declines and has a growing dividend, compounding at 15% since IPO. Although the stock experienced a pullback from its all-time high in April, it has provided investors with strong returns over the years, evidenced by a total return of 72% for the author.
A look at Valero Energy Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Valero Energy Corporation, an independent petroleum refining and marketing company with operations in the United States, Canada, and Aruba, has a positive long-term outlook based on its Smartkarma Smart Scores. With strong scores in Growth and Dividend, Valero Energy is positioned for expansion and shareholder returns. The company’s focus on providing various refined products including conventional gasolines, jet fuel, and petrochemicals contributes to its Growth score and indicates potential for continued success.
Additionally, Valero Energy‘s high Value and Momentum scores reflect its solid financial standing and market performance. While the company shows some room for improvement in Resilience, the overall outlook remains promising. Investors may view Valero Energy as a favorable investment option given its robust scores across key factors and its established presence in the petroleum refining industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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