Valero Energy Corporation (VLO), headquartered in San Antonio, Texas, is a global manufacturer and marketer of transportation fuels and petrochemical products. With a market cap of $47.08 billion, Valero operates a vast network of refineries and renewable energy facilities, supplying many industries with high-quality fuel solutions. The company is set to announce its Q3 earnings before the market opens on Wednesday, Oct. 23.
Ahead of the event, analysts expect VLO to report a profit of $1.77 per share, down 76.4% from $7.49 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $2.71 per share for the last quarter surpassed the consensus estimate by 3.8%. Higher refining throughput volumes supported Valero Energy's Q2 earnings beat.
For fiscal 2024, analysts expect VLO to report EPS of $9.85, down 60.4% from $24.90 in fiscal 2023.
VLO stock is up 10.8% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 19.4% gains and the Energy Select Sector SPDR Fund’s (XLE) 11.5% returns over the same time frame.
On Sep. 26, Valero Energy fell over 3% after Piper Sandler downgraded the stock from overweight to neutral. VLO dropped more than 1% on Sep. 4 as the broader energy stocks were pressured by a drop in WTI crude prices to an 8-3/4 month low.
However, the stock surged 5.5% on Jul. 25 after reporting its Q2 earnings, where it surpassed the market’s expectations, primarily driven by solid processing volumes despite weaker refining margins.
The consensus opinion on VLO stock is bullish, with an overall “Strong Buy” rating. Of 17 analysts covering the stock, 13 advise a “Strong Buy” rating, three suggest a “Hold,” and one indicates a “Strong Sell.”
VLO's average analyst price target is $158.12, indicating a potential upside of 9.8% from the current levels.
On the date of publication, Rashmi Kumari 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.
