Valero Energy ( NYSE: VLO ) is scheduled to announce Q3 earnings results on Tuesday, October 25th, before market open.
The consensus EPS Estimate is $6.94 (+468.9% Y/Y) and the consensus Revenue Estimate is $41.16B (+39.4% Y/Y).
Over the last 2 years, VLO has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 6 upward revisions and 4 downward. Revenue estimates have seen 0 upward revisions and 6 downward.
The company's stock fell -1.70% on July 28 after its Q2 results on recession fears, despite top and bottom line beating estimates. Q2 revenue had grown +86.2% Y/Y to $51.64B.
In an effort to combat inflation, the U.S. Federal reserve increased its key rate by 75 basis points for the third straight meeting in September, and the regulator is expected to maintain a hawkish view until inflation slows. Meanwhile, Wells Fargo thinks that market bottom would not come until the Fed pivots .
Amid the inflationary environment, Valero shares have gained ~27% in the past six months, compared to a decline of ~15% for the broader market indicator SPY. See chart here . The SA Quant Rating on VLO is Strong Buy , while the average Wall Street Analysts' Rating is Buy .
Earlier in October it was reported that the U.S. gasoline prices were climbing higher again after dropping for ~100 days, amid a widespread inflationary scenario. Meanwhile, an OPEC+ decision to cut oil production by 2M bbl/day is also expected to further elevate prices.
California Governor Gavin Newsom had called for a special session of state legislature to consider his proposal for a windfall profits tax on oil companies.
At the end of September, U.S. prices had regained the $80/bbl level. WTI November crude oil is +0.8% at $83.50/bbl.
In September, it was reported that Valero ( VLO ) and Marathon Petroleum were the biggest beneficiaries of the Biden administration's releases from the U.S. Strategic Petroleum Reserve, taking nearly half the crude offered. The companies were also lead buyers in August under the Strategic Petroleum Reserve sale.
Recent earnings Analysis from our contributors: Valero Energy: A Step Back To Move Forward
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Is Valero Energy set for Q3 beat again as stock gains amid inflation, rising oil prices?