The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Valero Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share improved.
Gross margins contracted, operating margins shrank, net margins grew.
Valero Energy recorded revenue of $34.67 billion. The four analysts polled by S&P Capital IQ predicted sales of $32.33 billion. Sales were 89% higher than the prior-year quarter's $22.16 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.21. The six earnings estimates compiled by S&P Capital IQ forecast -$0.25 per share on the same basis. GAAP EPS were $0.08 for Q4 compared to -$0.77 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 2%, 280 basis points worse than the prior-year quarter. Operating margin was 0.5%, 180 basis points worse than the prior-year quarter. Net margin was 0.1%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $30.48 billion. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $124.01 billion. The average EPS estimate is $3.61.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,399 members out of 4,584 rating the stock outperform, and 185 members rating it underperform. Among 1,200 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,174 give Valero Energy a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Valero Energy is outperform, with an average price target of $29.88.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.