What's in the Cards for Valero Energy in Fourth-Quarter Earnings?

Valero Energy Corporation VLO is set to report fourth-quarter 2024 results on Jan. 30, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, Valero Energy’s adjusted earnings of $1.14 per share missed the Zacks Consensus Estimate of $1.29, primarily due to a significant decline in refining throughput volumes. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 8.17%. 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 fourth-quarter earnings per share of $0.14 has witnessed five downward revisions and no upward revision in the past 30 days. The estimated figure suggests a decline of 96.06% from the prior-year reported number.The Zacks Consensus Estimate for revenues of $30.75 billion indicates a 13.16% decline from the year-ago recorded figure.Factors to ConsiderValero Energy is expected to have maintained a stable performance in the fourth quarter, owing to high refinery utilization rates during this period. According to data from the U.S. Energy Information Administration, spot prices for West Texas Intermediate Crude fell approximately 10% from the prior-year reported figure. This is likely to have reduced input costs, thereby aiding VLO’s profitability in the fourth quarter.However, challenges are likely to have loomed due to weaker global refinery margins, mainly due to the declining demand for refined petroleum products on account of a global economic slowdown. Crack spreads, a critical indicator of refining margins, showed signs of contraction in the fourth quarter compared with the third.Lower margins on gasoline and distillates, particularly in key refining regions like the U.S. Gulf Coast, could have pressured Valero's profitability. The weaker global demand for refined products, coupled with high inflation and heightened competition 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 -21.93%. 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 (Hold).Stocks to ConsiderHere are some stocks that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.EQT Corporation EQT currently has an Earnings ESP of +4.50% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.EQT is scheduled to release fourth-quarter earnings on Feb. 18. The Zacks Consensus Estimate for earnings is pegged at $0.50 per share, suggesting a 4.17% increase from the prior-year reported figure.Baker Hughes BKR presently has an Earnings ESP of +2.07% and a Zacks Rank #3.Baker Hughes is scheduled to release fourth-quarter earnings on Jan. 30. The Zacks Consensus Estimate for earnings is pegged at 63 cents per share, suggesting a 23.53% increase from the prior-year reported figure.Viper Energy VNOM currently has an Earnings ESP of +4.71% and a Zacks Rank #2.Viper Energy is scheduled to release fourth-quarter earnings on Feb. 24. The Zacks Consensus Estimate for earnings is pegged at $0.40 per share, suggesting a 40.3% decline from the prior-year reported figure.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 Valero Energy Corporation (VLO): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis Report Viper Energy Inc. (VNOM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks