PBF Energy Inc. PBF is set to report third-quarter 2022 earnings on Oct 27, before the opening bell.
In the last reported quarter, the leading independent refiner in North America announced adjusted earnings of $10.58 per share, beating the Zacks Consensus Estimate of $7.36, owing to increased contributions from the Refining segment. In the trailing four quarters, PBF Energy’s earnings beat the Zacks Consensus Estimate in all the four quarters, the average being 77.97%. This is depicted in the graph below:
PBF Energy Inc. Price and EPS Surprise
Let’s see how things have shaped up prior to this announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share of $6.03 has witnessed four upward revisions and one downward movement over the past 30 days. The estimated figure suggests a massive improvement from the prior-year quarter’s reported figure.
Similarly, the consensus estimate for third-quarter revenues of $10.12 billion indicates a 40.8% increase from the year-ago quarter’s reported figure.
What the Quantitative Model Suggests
Our proven model predicts an earnings beat for PBF Energy 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, which is exactly the case here.
Earnings ESP: PBF Energy has an Earnings ESP of +10.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PBF Energy currently carries a Zacks Rank #2.
Factors Driving Better-Than-Expected Earnings
Gasoline price was much higher in the third quarter than a year ago on demand recovery. The refining capacity to process oil into end products like gasoline was insufficient to support handsome fuel demand, thus elevating fuel prices. Hence, PBF Energy, among the largest independent petroleum refiners, is likely to have benefited from increased fuel prices.
The Zacks Consensus Estimate for PBF Energy’s income (loss) from operations from the refining business is pegged at $978 million, suggesting an improvement from $117 million reported in the year-ago quarter. Our estimate for the metric in the third quarter is pegged at $477.3 million, suggesting an improvement from the year-ago quarter’s actuals.
Other Stocks to Consider
Here are some other firms worth considering, as these too have the right combination of elements to beat on earnings in the upcoming quarterly reports:
Viper Energy Partners LP VNOM has an Earnings ESP of +20.24% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
Viper Energy is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting an increase of 90.5% from the prior-year quarter’s reported figure.
Diamondback Energy, Inc. FANG has an Earnings ESP of +0.75% and a Zacks Rank of 3.
Diamondback is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.47 per share, suggesting a significant increase from the prior-year quarter’s reported figure.
Halliburton Company HAL has an Earnings ESP of +1.13% and a Zacks Rank #2.
Halliburton is scheduled to release third-quarter earnings on Oct 25. The Zacks Consensus Estimate for HAL’s earnings is pegged at 56 cents per share, suggesting a massive increase from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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