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Sunoco (SUN) to Post Q3 Earnings: What's in the Offing?

Sunoco LP SUN is set to report third-quarter 2023 results on Nov 1, before the opening bell.

In the last reported quarter, the master limited partnership’s earnings of 78 cents per unit missed the Zacks Consensus Estimate of $1.02, owing to the lower contributions from the Fuel Distribution and Marketing segment.

In the trailing four quarters, Sunoco beat the Zacks Consensus Estimate for the bottom line once and missed the same thrice, delivering a negative earnings surprise of 21.7%, on average. This is depicted in the graph below:

Sunoco LP Price and EPS Surprise

 

Sunoco LP Price and EPS Surprise
Sunoco LP Price and EPS Surprise

Sunoco LP price-eps-surprise | Sunoco LP Quote

Estimate Trend

The Zacks Consensus Estimate for Sunoco’s third-quarter earnings per unit of $1.11 has witnessed two upward revisions and no downward movement in the past 30 days. The figure suggests a year-over-year decline of 48%.

The Zacks Consensus Estimate for the company’s revenues for the September-end quarter is pegged at $5.8 billion, suggesting a year-over-year decline of 8.2%.

Factors to Consider

The demand for motor fuel is expected to have increased in the third quarter, driven by a robust 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 third quarter is pegged at 1,971 million, suggesting a decline from the 1,986 million recorded in the year-ago quarter. Our estimate for the partnership’s total motor fuel gallons sold in the third quarter is pinned at 1,896 million, implying a decline from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for Sunoco’s revenues from motor fuel sales is pegged at $5,568 million, suggesting a decline from the $6,468 million recorded in the year-ago quarter. Our estimate for the same is pinned at $5,431.4 million, implying a year-over-year decline.

Lower motor fuel gallons sold are likely to have affected Sunoco’s performance in the to-be-reported 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 $1.11 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:

MPLX LP MPLX has an Earnings ESP of +0.82% 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 third-quarter earnings on Oct 31. The Zacks Consensus Estimate for MPLX’s earnings is pegged at 91 cents per share, suggesting a decline from the prior-year reported figure.

Cenovus Energy Inc. CVE currently has an Earnings ESP of +6.53% and a Zacks Rank #3.

The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for CVE’s earnings is pegged at 59 cents per share, suggesting a decline from the prior-year reported figure.

Pioneer Natural Resources Company PXD currently has an Earnings ESP of +0.91% and a Zacks Rank #2.

The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for PXD’s earnings is pegged at $5.53 per share, suggesting a decline from the prior-year reported figure.

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Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report

Sunoco LP (SUN) : Free Stock Analysis Report

Cenovus Energy Inc (CVE) : Free Stock Analysis Report

MPLX LP (MPLX) : Free Stock Analysis Report

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