Marathon Petroleum Corporation (MPC) is a leading player in the energy sector, focusing on refining, marketing, and midstream operations. With a market cap of $55.8 billion, it refines crude oil, markets petroleum products, and operates extensive transportation and logistics infrastructure primarily in the United States. The Findlay, Ohio-based company is expected to announce its Q3 earnings before the market opens on Tuesday, Nov. 5.
Ahead of the event, analysts expect the refiner to report a profit of $0.97 per share, down 88.1% from $8.14 per share reported in the year-ago quarter. However, the company has consistently surpassed Wall Street’s EPS projections in the past four quarters. MPC exceeded the consensus estimates by 35.5% in Q2 2024.
In fiscal 2024, analysts expect Marathon Petroleum to report an EPS of $8.71, down 63.1% from $23.63 in fiscal 2023. Nevertheless, looking forward to fiscal 2025, its EPS is expected to grow 21.4% year-over-year to $10.57.
MPC stock is up 6.7% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) nearly 23% gains and the Energy Select Sector SPDR Fund’s (XLE) 7.8% returns over the same time frame.
Shares of Marathon Petroleum surged 5.5% on Aug. 6 after the company reported better-than-expected Q2 adjusted EPS of $4.12, driven by higher crude processing volumes and strong performance in its midstream segment. Despite weaker refining margins, the company's ability to process 97% of its crude capacity and achieve a total throughput of 3.1 million barrels per day helped offset the impact of low margins. Additionally, revenue came in higher than expected at $38.4 billion, boosting investor confidence.
The consensus opinion on Marathon Petroleum stock is cautiously optimistic, with an overall “Moderate Buy” rating. Out of the 18 analysts covering the stock, 12 recommend “Strong Buy” and six suggest “Hold.” Currently, MPC is trading below the average analyst price target of $177.89.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
