The 10-second takeaway
For the quarter ended March 31 (Q1), Valero Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share increased.
Margins increased across the board.
Valero Energy tallied revenue of $33.47 billion. The four analysts polled by S&P Capital IQ foresaw sales of $32.32 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.18. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.00 per share. GAAP EPS were $1.18 for Q1 compared to -$0.78 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 5.0%, 240 basis points better than the prior-year quarter. Operating margin was 3.2%, 210 basis points better than the prior-year quarter. Net margin was 2.0%, 320 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $35.75 billion. On the bottom line, the average EPS estimate is $1.57.
Next year's average estimate for revenue is $124.81 billion. The average EPS estimate is $5.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,328 members out of 4,519 rating the stock outperform, and 191 members rating it underperform. Among 1,012 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 976 give Valero Energy a green thumbs-up, and 36 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 $48.44.
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