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Phillips 66 (PSX) Beats Q2 Earnings, Revenues Estimates

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Phillips 66 (PSX) Beats Q2 Earnings, Revenues Estimates

Phillips 66's (PSX) second-quarter 2018 results to gain from higher contribution in all the segments.

Phillips 66 PSX posted second-quarter 2018 adjusted earnings of $2.80 per share, which surpassed the Zacks Consensus Estimate of $2.16. The bottom line increased from the year-ago quarter’s figure of $1.09. The upside came on the back of higher contribution from all the segments.
 

Phillips 66 Price, Consensus and EPS Surprise

Phillips 66 Price, Consensus and EPS Surprise | Phillips 66 Quote

Quarterly revenues totaled $29.7 billion, up from the year-ago quarter’s tally of $24.6 billion. The figure also beat the Zacks Consensus Estimate of $29.4 billion.

Segment Results

Midstream

The segment generated adjusted quarterly earnings of $202 million, up from $96 million in the year-ago quarter. The expansion of its Sweeny Hub drove income.

Chemicals

The segment generated adjusted earnings of $262 million compared with $196 million in year-ago quarter. The improvement was supported by the ramp-up of the new U.S. Gulf Coast petrochemicals assets along with lowered down time.

Refining

The segment’s adjusted earnings of $910 million increased from $224 million in the prior-year quarter. During the quarter, Phillips 66’s refining utilization was 100%.

Marketing and Specialties (M&S)

This segment recorded earnings of $237 million, up from $214 million in the year-ago quarter.

Financial Condition

In the reported quarter, Phillips 66 generated $2.4 billion of cash from operations. It also returned capital worth $602 million to shareholders.

As of Jun 30, cash and cash equivalents were $1.9 billion along with debt of $8.5 billion. The company’s debt-to-capitalization ratio was 27%.

Q2 Price Performance  

During the second quarter, Phillips 66’s shares gained 17.1% compared with the industry’s 13.9% rise.



 

Zacks Rank & Other Stocks to Consider

Currently, Phillips 66 carries a Zacks Rank #2 (Buy).

A few other top-ranked players in the same sector are ConocoPhillips COP and China Petroleum and Chemical Corp. SNP, also known as Sinopec, and CVR Refining, LP CVRR. All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. It pulled off an average positive earnings surprise of 226.9% in the last four quarters.

Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.

Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.

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