U.S. markets closed
  • S&P 500

    -1.14 (-0.03%)
  • Dow 30

    +152.97 (+0.45%)
  • Nasdaq

    -58.96 (-0.52%)
  • Russell 2000

    +5.67 (+0.30%)
  • Crude Oil

    -1.66 (-2.13%)
  • Gold

    +8.40 (+0.48%)
  • Silver

    +0.06 (+0.29%)

    -0.0008 (-0.07%)
  • 10-Yr Bond

    -0.0150 (-0.40%)

    -0.0023 (-0.19%)

    +0.5100 (+0.37%)

    -67.73 (-0.41%)
  • CMC Crypto 200

    +4.32 (+1.13%)
  • FTSE 100

    +20.07 (+0.27%)
  • Nikkei 225

    -100.06 (-0.35%)

Phillips 66 (PSX) Q1 Earnings Beat Estimates, Revenues Miss

Contributions from pipeline transportation businesses back Phillips 66s (PSX) Q1 earnings.

Phillips 66 PSX posted first-quarter 2019 adjusted earnings per share of 40 cents, which surpassed the Zacks Consensus Estimate of 34 cents, courtesy of contributions from pipeline transportation businesses. This was offset partially by a significant decline in crude utilization rate.

Quarterly revenues totaled $23.7 billion, down from the year-ago quarter’s $24.1 billion. The top line also missed the Zacks Consensus Estimate of $24.7 billion.

Segment Results


The segment generated adjusted quarterly earnings of $316 million, up from $280 million in the year-ago quarter on increased contributions from pipeline transportation businesses.


The segment reported adjusted earnings of $227 million, down from $286 million in the year-ago quarter owing to lower margins.


The segment’s adjusted loss was $219 million against the year-ago quarter’s earnings of $110 million.  The underperformance can be attributed to unplanned downtime, maintenance work and a substantial decline in crude utilization rate. During the quarter, Phillips 66’s refining utilization was 84%.

Marketing and Specialties (M&S)

This segment’s earnings deteriorated from $222 million in the year-ago quarter to $205 million.

Financial Condition

In the reported quarter, Phillips 66 used in $478 million of cash from operations. Through dividend payments along with share repurchases, the company returned capital worth $708 million to stockholders.

As of Mar 31, 2019, cash and cash equivalents were $1,253 million along with debt of $11.3 billion. The company’s debt-to-capitalization ratio was 30%.

Zacks Rank and Key Picks

Phillips 66 currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are ProPetro Holding Corp. PUMP, Parsley Energy PE and TransCanada Corp. TRP, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

The Zacks Consensus Estimate for Midland, TX-based ProPetro’s 2019 earnings is pegged at $2.42, indicating 21% growth over the year-ago reported figure. Next year’s forecast is $2.70, hinting at 11.5% growth.

The Zacks Consensus Estimate for Austin, TX-based Parsley’s 2019 earnings stands at $1.53, implying an 8.5% improvement over the prior-year reported number. Next year’s projection is $2.47, calling for 61.8% growth.

TransCanada has beaten estimates in the last four quarters, the average being 19%.

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Phillips 66 (PSX) : Free Stock Analysis Report
TransCanada Corporation (TRP) : Free Stock Analysis Report
Parsley Energy, Inc. (PE) : Free Stock Analysis Report
ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report
To read this article on Zacks.com click here.