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Sunoco Q2 net income and EBITDA miss estimates

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Overview

  • Sunoco Q2 net income declines yr/yr, missing analyst expectations, per LSEG data

  • Adjusted EBITDA for Q2 misses consensus, despite increase from last year, per LSEG data

  • Co increases quarterly distribution by 1.25%, aligning with capital allocation strategy

Outlook

  • Sunoco reaffirms 2025 Adjusted EBITDA guidance of $1.90 bln to $1.95 bln

  • Company on track for 5% distribution growth target for 2025

Result Drivers

  • FUEL DISTRIBUTION - Segment Adjusted EBITDA decreased due to lower profit per gallon and increased expenses related to Parkland acquisition

  • PIPELINE SYSTEMS - Adjusted EBITDA increased significantly due to the acquisition of NuStar and reduced operating costs

  • TERMINALS - Segment benefited from increased volumes and lower operating costs following the acquisition of NuStar

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Net Income

Miss

$86 mln

$176.10 mln (5 Analysts)

Q2 Adjusted EBITDA

Miss

$464 mln

$464.90 mln (7 Analysts)

Q2 Capex

$160 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

  • Wall Street's median 12-month price target for Sunoco LP is $65.00, about 17.7% above its August 5 closing price of $53.50

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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