The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Valero Energy met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Valero Energy logged revenue of $34.73 billion. The five analysts polled by S&P Capital IQ expected revenue of $34.97 billion on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $33.48 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 $1.90. The 17 earnings estimates compiled by S&P Capital IQ forecast $1.74 per share. GAAP EPS of $1.21 for Q3 were 43% lower than the prior-year quarter's $2.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.6%, 100 basis points worse than the prior-year quarter. Operating margin was 4.9%, 110 basis points worse than the prior-year quarter. Net margin was 2.0%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $32.40 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $132.47 billion. The average EPS estimate is $4.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,353 members out of 4,541 rating the stock outperform, and 188 members rating it underperform. Among 1,091 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,060 give Valero Energy a green thumbs-up, and 31 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 $35.63.
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