You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marathon Petroleum (MPC) Up 1.4% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Marathon Petroleum (MPC - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Marathon Petroleum due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Marathon Petroleum reported second-quarter adjusted earnings per share of $4.12, which comfortably beat the Zacks Consensus Estimate of $3.04. The outperformance primarily reflects the stronger-than-expected performance of its Refining & Marketing segment. Operating income of the segment totaled $1.3 billion, surpassing the consensus mark of $1 billion.
However, the company’s bottom line fell from the year-ago adjusted profit of $5.32 due to a drop in refining margin.
Marathon Petroleum reported revenues of $38.4 billion, which beat the Zacks Consensus Estimate of $32 billion and improved 4.2% year over year.
Inside MPC’s Segments
Refining & Marketing: The Refining & Marketing segment reported an operating income of $1.3 billion, which fell 42.3% from the year-ago profit of $2.3 billion. The drop primarily reflects lower year-over-year margins, partly offset by an increase in capacity utilization.
Specifically, the refining margin of $17.37 per barrel declined from $22.10 a year ago. But capacity utilization during the quarter was 97%, up from 93% in the corresponding period of 2023.
Meanwhile, total refined product sales volumes were 3,742 thousand barrels per day (mbpd), down from 3,581 mbpd in the year-ago quarter. But throughput rose from 2,925 mbpd in the year-ago quarter to 3,065 mbpd and outperformed the Zacks Consensus Estimate of 2,968 mbpd.
MPC’s operating costs per barrel decreased from $5.15 in the year-ago quarter to $4.97.
Midstream:This unit mainly reflects Marathon Petroleum’s general partner and majority limited partner interests in MPLX LP (MPLX) — a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment profitability was $1.3 billion, up 6.2% from the second quarter of 2023. Earnings were buoyed up by higher rates and volumes processed, together with contribution from acquired assets.
Financial Analysis
Marathon Petroleum reported expenses of $35.8 billion in second-quarter 2024, up 6.9% from the year-ago quarter.
In the reported quarter, Marathon Petroleum spent $569 million on capital programs (53% on Refining & Marketing and 42% on the Midstream segment) compared to $562 million in the year-ago period.
As of Jun 30, the company had cash and cash equivalents of $4.4 billion and total debt, including that of MPLX, of $28.9 billion, with a debt-to-capitalization of 50.9%.
In the second quarter, MPC repurchased $2.9 billion of shares and a further $900 million worth of shares in July. The company currently has a remaining authorization of $5.8 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -26.3% due to these changes.
VGM Scores
At this time, Marathon Petroleum has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Marathon Petroleum has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Marathon Petroleum is part of the Zacks Oil and Gas - Refining and Marketing industry. Over the past month, TotalEnergies SE Sponsored ADR (TTE - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended June 2024 more than a month ago.
TotalEnergies reported revenues of $49.18 billion in the last reported quarter, representing a year-over-year change of -12.6%. EPS of $1.98 for the same period compares with $1.99 a year ago.
TotalEnergies is expected to post earnings of $2.07 per share for the current quarter, representing a year-over-year change of -21.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.3%.
TotalEnergies has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
In-Depth Zacks Research for the Tickers Above
Normally $25 each - click below to receive one report FREE:
A month has gone by since the last earnings report for Marathon Petroleum (MPC - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Marathon Petroleum due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Marathon Overcomes Lower Margins, Tops Q2 Earnings
Marathon Petroleum reported second-quarter adjusted earnings per share of $4.12, which comfortably beat the Zacks Consensus Estimate of $3.04. The outperformance primarily reflects the stronger-than-expected performance of its Refining & Marketing segment. Operating income of the segment totaled $1.3 billion, surpassing the consensus mark of $1 billion.
However, the company’s bottom line fell from the year-ago adjusted profit of $5.32 due to a drop in refining margin.
Marathon Petroleum reported revenues of $38.4 billion, which beat the Zacks Consensus Estimate of $32 billion and improved 4.2% year over year.
Inside MPC’s Segments
Refining & Marketing: The Refining & Marketing segment reported an operating income of $1.3 billion, which fell 42.3% from the year-ago profit of $2.3 billion. The drop primarily reflects lower year-over-year margins, partly offset by an increase in capacity utilization.
Specifically, the refining margin of $17.37 per barrel declined from $22.10 a year ago. But capacity utilization during the quarter was 97%, up from 93% in the corresponding period of 2023.
Meanwhile, total refined product sales volumes were 3,742 thousand barrels per day (mbpd), down from 3,581 mbpd in the year-ago quarter. But throughput rose from 2,925 mbpd in the year-ago quarter to 3,065 mbpd and outperformed the Zacks Consensus Estimate of 2,968 mbpd.
MPC’s operating costs per barrel decreased from $5.15 in the year-ago quarter to $4.97.
Midstream: This unit mainly reflects Marathon Petroleum’s general partner and majority limited partner interests in MPLX LP (MPLX) — a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment profitability was $1.3 billion, up 6.2% from the second quarter of 2023. Earnings were buoyed up by higher rates and volumes processed, together with contribution from acquired assets.
Financial Analysis
Marathon Petroleum reported expenses of $35.8 billion in second-quarter 2024, up 6.9% from the year-ago quarter.
In the reported quarter, Marathon Petroleum spent $569 million on capital programs (53% on Refining & Marketing and 42% on the Midstream segment) compared to $562 million in the year-ago period.
As of Jun 30, the company had cash and cash equivalents of $4.4 billion and total debt, including that of MPLX, of $28.9 billion, with a debt-to-capitalization of 50.9%.
In the second quarter, MPC repurchased $2.9 billion of shares and a further $900 million worth of shares in July. The company currently has a remaining authorization of $5.8 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -26.3% due to these changes.
VGM Scores
At this time, Marathon Petroleum has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Marathon Petroleum has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Marathon Petroleum is part of the Zacks Oil and Gas - Refining and Marketing industry. Over the past month, TotalEnergies SE Sponsored ADR (TTE - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended June 2024 more than a month ago.
TotalEnergies reported revenues of $49.18 billion in the last reported quarter, representing a year-over-year change of -12.6%. EPS of $1.98 for the same period compares with $1.99 a year ago.
TotalEnergies is expected to post earnings of $2.07 per share for the current quarter, representing a year-over-year change of -21.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.3%.
TotalEnergies has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.