Inside Valero Energy’s Upcoming Second Quarter Earnings Release

The Cheat Sheet

S&P 500 component Valero Energy Corporation will unveil its latest earnings on Tuesday, July 26, 2011. Valero Energy Corporation is an independent refining and marketing company, which owns and operates refineries that produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, and lubricants. Oil ETFs: The Top 10 Exchange Traded Funds for Your Oil Investing List>>

Valero Energy Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.51 per share, a rise of 62.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.10. Between one and three months ago, the average estimate moved up, and has risen from $1.49 during the last month. For the year, analysts are projecting net income of $3.64 per share, a rise of more than twofold from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 37 cents, reporting profit of 80 cents per share against a mean estimate of net income of 43 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $28.44 billion in revenue this quarter, a rise of 30.6% from the year ago quarter. Analysts are forecasting total revenue of $106.82 billion for the year, a rise of 29.9% from last year’s revenue of $82.23 billion.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, none rating it as a sell and eight rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 19.9%, with the biggest boost coming in the most recent quarter when revenue rose 33.9% from the year earlier quarter.

Competitors to Watch: Tesoro Corporation , Alon USA Energy, Inc. , Western Refining, Inc. , Sunoco, Inc. , CVR Energy, Inc. , Frontier Oil Corporation , Chevron Corporation , Holly Corporation , Delek US Holdings, Inc. , and Exxon Mobil Corporation .

Stock Price Performance: During April 25, 2011 to July 20, 2011, the stock price had fallen $3.32 (-11.4%) from $29.06 to $25.74. The stock price saw one of its best stretches over the last year between September 23, 2010 and October 1, 2010 when shares rose for seven-straight days, rising 6% (+$1) over that span. It saw one of its worst periods between August 18, 2010 and August 26, 2010 when shares fell for seven-straight days, falling 8.2% (-$1.39) over that span. Shares are up $2.70 (+11.7%) year to date.

(Source: Xignite Financials)

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