The 10-second takeaway
For the quarter ended March 31 (Q1), Valero Energy beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.
Gross margins contracted, operating margins increased, net margins contracted.
Valero Energy logged revenue of $35.17 billion. The four analysts polled by S&P Capital IQ hoped for sales of $32.74 billion on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $26.09 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.78. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS were -$0.78 for Q1 compared to $0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 2.6%, 20 basis points worse than the prior-year quarter. Operating margin was 1.0%, 10 basis points better than the prior-year quarter. Net margin was -1.2%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $37.91 billion. On the bottom line, the average EPS estimate is $1.55.
Next year's average estimate for revenue is $127.07 billion. The average EPS estimate is $3.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,381 members out of 4,567 rating the stock outperform, and 186 members rating it underperform. Among 1,086 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,059 give Valero Energy a green thumbs-up, and 27 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 $29.79.
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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.