Valero Energy to Report Q1 Earnings: What's in the Cards?

Valero Energy Corporation VLO is set to report first-quarter 2025 results on April 24, before the opening bell. In the last reported quarter, Valero Energy’s adjusted earnings of 64 cents per share beat the Zacks Consensus Estimate of 13 cents due to an increase in renewable diesel margins and lower total cost of sales. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 101.16%. This is depicted in the graph below: Valero Energy Corporation Price and EPS Surprise Valero Energy Corporation price-eps-surprise | Valero Energy Corporation QuoteEstimate TrendThe Zacks Consensus Estimate for first-quarter earnings per share of $0.43 has witnessed four downward revisions and no upward revision in the past 30 days. The estimated figure suggests a decline of 88.74% from the prior-year reported number.The Zacks Consensus Estimate for revenues of $28.45 billion indicates a 10.42% decline from the year-ago recorded figure.Factors to ConsiderValero Energy is expected to have maintained a stable performance in the first quarter, owing to high refinery utilization rates during this period. Per the data from the U.S. Energy Information Administration, spot prices for West Texas Intermediate Crude dropped nearly 7% from the prior-year quarter’s level. This might have supported the refining player’s profitability by reducing its input costs. Further, a decrease in U.S. refining capacity due to the shutdown of LyondellBasell's Houston refinery is expected to have supported refining margins, aiding VLO’s profitability in the to-be-reported quarter.  However, challenges are likely to have loomed, particularly in the refining segment, due to declining crack spreads amid softer demand for refined petroleum products, especially from China and the United States. Lower margins on gasoline and distillates are also anticipated to have negatively impacted Valero's profitability in the first quarter. Sluggish demand for refining products from key markets like the United States and China, combined with weaker market crack spreads and increased competition from abroad, might have negatively impacted VLO’s profitability in the to-be-reported quarter.These factors are anticipated to have affected demand and pricing dynamics, potentially hampering Valero Energy’s quarterly performance.Earnings WhispersOur proven model does not indicate an earnings beat for VLO 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. That is not the case here, as you will see below.Earnings ESP: Valero Energy has an Earnings ESP of -14.72%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Zacks Rank: VLO currently carries a Zacks Rank #3.Stocks to ConsiderHere are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.Antero Resources Corporation AR has an Earnings ESP of +6.35% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Antero Resources is scheduled to release first-quarter 2025 earnings on April 30. The Zacks Consensus Estimate for AR’s earnings is pegged at 85 cents per share, implying 1,114.26% year-over-year growth.Helmerich & Payne Inc. HP has an Earnings ESP of +7.31% and a Zacks Rank #3 at present.Helmerich & Payne is set to release first-quarter 2025 earnings on May 7. The Zacks Consensus Estimate for HP’s earnings is pegged at 65 cents per share, indicating a 24.42% decline year over year.Comstock Resources, Inc. CRK has an Earnings ESP of +22.33% and a Zacks Rank #3 at present.Comstock Resources is scheduled to release first-quarter earnings on April 30. The Zacks Consensus Estimate for CRK’s earnings is pegged at 15 cents per share, which indicates a 600% year-over-year improvement.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Helmerich & Payne, Inc. (HP): Free Stock Analysis Report Comstock Resources, Inc. (CRK): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Antero Resources Corporation (AR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks