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Phillips 66 (PSX) to Report Q2 Earnings: Is a Beat in Store?

Phillips 66 PSX is set to report second-quarter 2022 results on Jul 29, before the opening bell.

In the last reported quarter, the company recorded adjusted earnings per share of $1.32, comfortably beating the Zacks Consensus Estimate of $1.14 on stronger refining margins on a worldwide basis.

In the trailing four quarters, Phillips 66 beat the Zacks Consensus Estimate for the bottom line, delivering an earnings surprise of 33.9%, on average. This is depicted in the graph below:

Phillips 66 Price and EPS Surprise

 

Phillips 66 Price and EPS Surprise
Phillips 66 Price and EPS Surprise

Phillips 66 price-eps-surprise | Phillips 66 Quote

Let’s see how things have shaped up prior to the announcement.

Estimate Trend

The Zacks Consensus Estimate for the company’s second-quarter earnings per share of $5.49 has witnessed five upward revisions and no downward movement in the past 30 days. The consensus estimate suggests a year-over-year increase of 642%.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $34.2 billion indicates a 22.5% improvement from the year-ago reported figure.

Earnings Whispers

Our proven model conclusively predicts an earnings beat for Phillips 66 this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. As you can see, that is the case here.

Earnings ESP: Phillips 66 has an Earnings ESP of +8.38%. This is because the Most Accurate Estimate is currently pegged at earnings of $5.95 per share, whereas the Zacks Consensus Estimate is pinned at $5.49 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Phillips 66 currently sports a Zacks Rank #1.

Factors to Note

In the June-end quarter of 2022, the demand for refined petroleum products improved significantly due to continued growth in fuel consumption. This is likely to have benefitted Phillips 66 in the to-be-reported quarter since it is one of the world’s largest refiners.

The Zacks Consensus Estimate for Phillips 66’s adjusted pre-tax income from the refining business is pegged at $1,836 million, suggesting a massive improvement from a loss of $706 million in the year-ago period. This is likely to have buoyed the quarterly performance of Phillips 66.

Other Stocks That Warrant a Look

Here are some other companies from the Energy space that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Continental Resources, Inc. CLR has an Earnings ESP of +1.70% and is a Zacks #2 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Continental Resources is scheduled to release second-quarter results on Jul 28. The Zacks Consensus Estimate for CLR’s quarterly earnings is pegged at $3.12 per share, suggesting an increase of 243% from the prior-year reported figure.

Chevron Corporation CVX has an Earnings ESP of +1.35% and is a Zacks #2 Ranked player at present.

Chevron is scheduled to release second-quarter results on Jul 29. The Zacks Consensus Estimate for CVX’s quarterly earnings is pegged at $4.95 per share, suggesting an increase of 189.5% from the prior-year reported figure.

Imperial Oil Limited IMO has an Earnings ESP of +2.41% and is a Zacks #2 Ranked player at present.

Imperial Oil is scheduled to release second-quarter results on Jul 29. The Zacks Consensus Estimate for IMO’s quarterly earnings is pegged at $2.14 per share, suggesting an increase of 422% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Chevron Corporation (CVX) : Free Stock Analysis Report
 
Imperial Oil Limited (IMO) : Free Stock Analysis Report
 
Phillips 66 (PSX) : Free Stock Analysis Report
 
Continental Resources, Inc. (CLR) : Free Stock Analysis Report
 
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