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

Valero Energy Corporation VLO is set to report third-quarter 2024 results on Oct. 24, 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 $2.71 per share beat the Zacks Consensus Estimate of $2.61, primarily due to an increase in refining throughput volumes. Earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 11.52%. 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 third-quarter earnings per share of $1.29 has witnessed five downward revisions and no upward revision in the past 30 days. The estimated figure suggests a decline of 82.78% from the prior-year reported number.The Zacks Consensus Estimate for revenues of $33.04 billion indicates a 13.97% decline from the year-ago recorded figure.Factors to ConsiderValero Energy is expected to have maintained a stable performance in the third 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 7.1% from the prior-year reported figure. This is likely to have led to a reduction in input costs, thereby aiding VLO’s profitability in the third quarter.However, challenges are likely to have loomed due to weaker global refinery margins, mainly due to the declining demand for refined petroleum products, caused by a global economic slowdown. Furthermore, new refining capacity abroad owing to the startup of new refineries in the Middle East and Africa is anticipated to have heightened competition in the market, resulting in a downward pressure on prices for refined products. The weaker global demand for refined products 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 -10.67%. 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 #5 (Strong Sell).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.Cheniere Energy, Inc. LNG currently has an Earnings ESP of +5.35% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Cheniere Energy is scheduled to release third-quarter earnings on Oct. 31. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, suggesting a 21.10% decrease from the prior-year reported figure.Murphy USA Inc. MUSA currently has an Earnings ESP of +1.76% and a Zacks Rank #3.MUSA is scheduled to release third-quarter earnings on Oct. 30. The Zacks Consensus Estimate for earnings is pegged at $6.69 per share, suggesting a 13% decrease from the prior-year reported figure.Oceaneering International, Inc. OII presently has an Earnings ESP of +2.27% and a Zacks Rank #3.Oceaneering is scheduled to release third-quarter earnings on Oct. 23. The Zacks Consensus Estimate for earnings is pegged at 44 cents per share, suggesting a 15.79% improvement from the prior-year reported figure.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want 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 Oceaneering International, Inc. (OII): Free Stock Analysis Report Murphy USA Inc. (MUSA): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): 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