The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Valero Energy beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased significantly.
Margins grew across the board.
Valero Energy tallied revenue of $34.70 billion. The four analysts polled by S&P Capital IQ predicted sales of $32.49 billion on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $34.45 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 $1.88. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.18 per share. GAAP EPS of $1.83 for Q4 were much higher than the prior-year quarter's $0.08 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 6.4%, 440 basis points better than the prior-year quarter. Operating margin was 4.7%, 420 basis points better than the prior-year quarter. Net margin was 2.9%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $29.72 billion. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $130.71 billion. The average EPS estimate is $5.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,337 members out of 4,523 rating the stock outperform, and 186 members rating it underperform. Among 1,129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,097 give Valero Energy a green thumbs-up, and 32 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 $37.81.
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