PSX - Phillips 66 Q3 preview: Another earnings beat in the cards amid strong demand

Phillips 66 ( NYSE: PSX ) is scheduled to announce Q3 results on Tuesday, Nov. 1, before market open.

Consensus EPS estimate is $5.03 (+58.2% Y/Y) and consensus revenue estimate is $40.68B.

Over the last 2 years, PSX has beaten EPS estimates 88% of the time and revenue estimates 38% of the time.

Over the last 3 months, EPS estimates have seen 7 upward revisions and 1 downward. Revenue estimates have seen 1 upward revision and 5 downward.

Phillips ( PSX ) expects refining results will remain strong in Q3 given limited product supply increases and strong demand fundamentals. The firm reported Q2 earnings beat, driven by surging demand for fuel and refined products.

SA contributor Michael Wiggins De Oliveira believes Q3 results will be strong support for Phillips' ( PSX ) current valuation and its strong balance sheet may lead to more dividend raises.

Recent news:

• Phillips ( PSX ) reportedly started reducing its workforce as part of a restructuring program, in line with moves by other U.S. refiners to cut costs despite reaping record profits.
• The EPA denied a permit for Phillips' ( PSX ) Bluewater offshore oil export terminal project in Texas as it would have allowed too much pollution .
• Phillips ( PSX ) made a non-binding offer to buy all units of DCP Midstream ( DCP ) it does not already own for $34.75 apiece as part of a realignment of interests in DCP ( DCP ) and Gray Oak Pipeline via a merger of existing JVs owned with Enbridge ( ENB ).

Shares of Phillips ( PSX ) gained 37% YTD, but underperformed the broader S&P 500 Energy index .

Take a look at comparison of key stats between Phillips ( PSX ) and its peers .

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