Sunoco (SUN) to Post Q2 Earnings: What's in the Offing?
Sunoco LP SUN is set to report second-quarter 2023 results on Aug 2, before the opening bell.
In the last reported quarter, the master limited partnership’s earnings of $1.41 per unit beat the Zacks Consensus Estimate of $1.21, owing to the higher contributions from the Fuel Distribution and Marketing segment. The positives were partially offset by the higher total cost of sales and operating expenses.
In the trailing four quarters, Sunoco beat the Zacks Consensus Estimate for the bottom line twice and missed the same twice, delivering a negative earnings surprise of 14.47%, on average. This is depicted in the graph below:
Sunoco LP Price and EPS Surprise
Sunoco LP price-eps-surprise | Sunoco LP Quote
Estimate Trend
The Zacks Consensus Estimate for Sunoco’s second-quarter earnings per unit of $1.02 has witnessed no upward and downward movement in the past 30 days. The figure suggests a year-over-year decline of 15%.
The Zacks Consensus Estimate for the company’s revenues for the June-end quarter is pegged at $5.8 billion, suggesting a year-over-year rise of 25.7%.
Factors to Consider
In the June-end quarter, the demand for motor fuel is likely to have improved on the back of a strong economic recovery. Sunoco is expected to have benefited from the development as it is among the largest motor fuel distributors in the U.S. wholesale market by volume. Being the largest independent fuel distributor in America, Sunoco has been depicting a stable business model.
The Zacks Consensus Estimate for Sunoco’s total motor fuel gallons sold in the second quarter is pegged at 1,955 million, suggesting a decline from the 1,985 million recorded in the year-ago quarter. Our estimate for the partnership’s total motor fuel gallons sold in the second quarter is pinned at 1,924 million, also implying a decline from the year-ago quarter’s reported figure.
As a result, the Zacks Consensus Estimate for Sunoco’s gross profit from motor fuel sales is pegged at $213 million, suggesting a decline from the $245 million recorded in the year-ago quarter. Our estimate for the same is pinned at $188 million, implying a year-over-year decline.
Lower motor fuel gallons sold are likely to have affected Sunoco’s performance in the second quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sunoco 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 not the case here.
Earnings ESP: Sunoco has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at $1.02 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sunoco currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms worth considering, as these have the right combination of elements to beat on earnings in the upcoming quarterly reports:
Murphy USA Inc. MUSA currently has an Earnings ESP of +1.80% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release second-quarter earnings on Aug 2. The Zacks Consensus Estimate for MUSA’s earnings is pegged at $6.03 per share, suggesting a decline from the prior-year reported figure.
Cactus, Inc. WHD has an Earnings ESP of +3.97% and a Zacks #3 at present.
Cactus is scheduled to release second-quarter results on Aug 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 69 cents per share, indicating an improvement from the year-ago quarter’s reported figure.
Southwestern Energy Company SWN has an Earnings ESP of +4.21% and is a Zacks #3 Ranked player at present.
Southwestern is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for SWN’s earnings is pegged at 7 cents per share, suggesting a decline from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Sunoco LP (SUN) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Cactus, Inc. (WHD) : Free Stock Analysis Report
