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Valero Energy Provides Preliminary Revenue Estimates for Q1

Zacks Equity Research

Valero Energy Corporation VLO has announced its preliminary estimated first-quarter 2020 revenues.

The company expects revenues for the March quarter in the band of $22,200 million to $20,100 million. The Zacks Consensus Estimate for the same is pegged at $18,640 million. Moreover, the company projects adjusted EBITDA attributable to stockholders in the range of $820 million to $380 million.

Valero Energy recently changed the release date for first-quarter earnings to Apr 29, before the opening bell. Notably, the Zacks Consensus Estimate for earnings is pegged at 37 cents per share, suggesting a year-over-year improvement of almost 9%.

Investors should note that owing to the coronavirus-hit global energy demand and uncertainties arising from the pandemic, the company has withdrawn its financial and operational guidance for the March quarter and full-year 2020.

Valero Energy added that in the wake of reduced demand for refined products, it has started to take drastic measures like lowering oil processing volumes at most refineries in late March and through early April. To further limit production volumes of gasoline, the company has idled (not permanently) several plants. Valero Energy has also taken steps like lowering production volumes of jet fuel. Other measures include temporary idling of eight ethanol units.

The company has also decided to defer some capital projects, associated to its refining and ethanol segments, which were planned for this year. The company has announced entering into a 364-Day credit facility of $875 million as well.

Valero Energy Corporation Price

 

Valero Energy Corporation Price

Valero Energy Corporation price | Valero Energy Corporation Quote

Headquartered in San Antonio, TX, Valero Energy is a leading petroleum refiner in the world. The company currently carries a Zacks Rank #3 (Hold).Meanwhile, better-ranked players in the energy sector are Penn Virginia Corporation PVAC, Southwestern Energy Company SWN and Sunoco LP SUN. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Penn Virginia has surpassed the Zacks Consensus Estimate for earnings in all the prior four quarters.

Southwestern Energy has an average positive earnings surprise of 22% for the past four quarters.

Sunoco is likely to see earnings growth of 11.7% in 2020.

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