Sunoco LP (SUN) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The upward trend in estimate revisions for this master limited partnership reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estima ...

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. Most Powerful Force Impacting Stock Prices For Sunoco LP, rising earnings estimates and the consequent rating upgrade fundamentally mean an impro ...

About Sunoco LP Contacts SOURCE Sunoco LP A slide presentation that management will reference during these meetings is available on SUN's website at www.sunocolp.com in the Investor Relations section under Webcasts & Presentations. Sunoco LP (NYSE: SUN) is a leading energy infrastructure and fuel distribution master limited partnership operating in over 40 U.S. states, Puerto Rico, Europe, and Mexico. The Partnership's midstream operations include an extensive network of approximately 10,000 miles of pipeli ...

A month has gone by since the last earnings report for Sunoco LP (SUN) . Shares have lost about 2.4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Sunoco LP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Sunoco Q1 Earnings Beat Estimates Sunoco LP reported fir ...

DALLAS, June 6, 2024 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced that Sunoco LP and NuStar Energy Partners, L.P. 2023 Schedule K-3s reflecting items of international tax relevance are available online. Unitholders requiring this information may access their Schedule K-3 at www.sunocolp.com in the investor relations section of the website. To receive an electronic copy of your 2023 Schedule K-3 via email, SUN unitholders owning SUN Common Units in 2023 may also call Tax ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Sunoco LP (SUN) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Sunoco LP currently has an average brokerage recommendation ( ...

Sunoco LP (SUN) has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days. The Zacks Consensus Estimate for Sunoco's 2024 and 2025 earnings per share (EPS) is pegged at $5.07 and $4.47. SUN currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. Sunoco operates an extensive network of approximately 9,500 miles of pipeline and more than 100 terminals, serving about 10,000 convenience stores, independent dealers, commercial customers and distributors acros ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Sunoco (SUN) as a strong value stock based on its financial metrics and Zacks Rank [2][4][7]. Company Summary - Sunoco (SUN) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 11.12, which is lower than the industry average of 12.75, suggesting it may be undervalued [4]. - SUN's Forward P/E has fluctuated between 9.34 and 16.32 over the past year, with a median of 12.12, indicating variability in market perception [4]. - The P/S ratio for SUN is 0.23, compared to the industry average of 0.3, further supporting the notion of undervaluation [5]. - SUN's P/CF ratio stands at 6.75, which is attractive relative to the industry's average of 7.51, indicating solid cash flow performance [6]. - Overall, the financial metrics suggest that SUN is likely being undervalued, combined with a strong earnings outlook [7].

PART I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Sunoco LP's Q1 2024 unaudited consolidated financial statements show net income increased to $230 million, total assets grew to $7.39 billion, reflecting acquisitions and divestitures Consolidated Balance Sheets | | March 31, 2024 (Millions USD) | December 31, 2023 (Millions USD) | | :--- | :--- | :--- | | **Total current assets** | $2,723 | $1,927 | | **Total assets** | $7,392 | $6,826 | | **Total current liabilities** | $1,647 | $1,373 | | **Long-term debt, net** | $3,795 | $3,580 | | **Total liabilities** | $6,271 | $5,848 | | **Total equity** | $1,121 | $978 | - Total assets increased to **$7.39 billion** from **$6.83 billion**, primarily driven by a rise in current assets, which includes **$511 million** in assets held for sale and a significant increase in cash and cash equivalents to **$215 million**[9](index=9&type=chunk) Consolidated Statements of Operations and Comprehensive Income | | Three Months Ended March 31, 2024 (Millions USD) | Three Months Ended March 31, 2023 (Millions USD) | | :--- | :--- | :--- | | **Total revenues** | $5,499 | $5,362 | | **Operating income** | $297 | $199 | | **Net income** | $230 | $141 | | **Diluted EPS** | $2.26 | $1.41 | - Net income increased by **63%** year-over-year, rising to **$230 million** in Q1 2024 from **$141 million** in Q1 2023, primarily driven by higher operating income[12](index=12&type=chunk) Consolidated Statements of Equity - Total equity increased from **$978 million** at the end of 2023 to **$1.12 billion** as of March 31, 2024, driven by net income of **$230 million**, partially offset by **$91 million** in cash distributions to unitholders[15](index=15&type=chunk) Consolidated Statements of Cash Flows | | Three Months Ended March 31, 2024 (Millions USD) | Three Months Ended March 31, 2023 (Millions USD) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $286 | $326 | | **Net cash used in investing activities** | ($223) | ($31) | | **Net cash provided by (used in) financing activities** | $123 | ($188) | | **Net increase in cash and cash equivalents** | $186 | $107 | - Cash used in investing activities increased significantly to **$223 million**, primarily due to a **$185 million** cash payment for an acquisition, while cash from financing activities was positive due to net borrowings of **$214 million** on the Credit Facility[18](index=18&type=chunk) Notes to Consolidated Financial Statements - On May 3, 2024, the company completed its acquisition of NuStar Energy L.P., issuing approximately **50.6 million** common units and assuming about **$3.4 billion** in debt[27](index=27&type=chunk) - On March 13, 2024, the company acquired liquid fuels terminals in Amsterdam and Bantry Bay from Zenith Energy for **€170 million** (**$185 million**)[28](index=28&type=chunk) - On April 16, 2024, the company completed the sale of **204** convenience stores to 7-Eleven, Inc. for approximately **$1.0 billion**, with related assets and liabilities classified as held for sale on the March 31, 2024 balance sheet[29](index=29&type=chunk) - Cost of sales for Q1 2024 included a favorable inventory valuation adjustment of **$130 million**, a significant increase from the **$29 million** favorable adjustment in Q1 2023, which was a primary driver of higher net income[31](index=31&type=chunk) | Segment | Adjusted EBITDA Q1 2024 (Millions USD) | Adjusted EBITDA Q1 2023 (Millions USD) | | :--- | :--- | :--- | | Fuel Distribution and Marketing | $219 | $195 | | All Other | $23 | $26 | | **Total** | **$242** | **$221** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights Q1 2024 performance, including strategic acquisitions and divestitures, a rise in Adjusted EBITDA to $242 million, and strong liquidity Recent Developments - Completed the acquisition of NuStar Energy L.P. on May 3, 2024, adding approximately **9,500 miles** of pipeline and **63** terminal and storage facilities[68](index=68&type=chunk) - Acquired liquid fuels terminals in Amsterdam, Netherlands and Bantry Bay, Ireland from Zenith Energy for **$185 million** on March 13, 2024[69](index=69&type=chunk) - Completed the sale of **204** convenience stores in West Texas, New Mexico, and Oklahoma to 7-Eleven, Inc. for approximately **$1.0 billion** on April 16, 2024[70](index=70&type=chunk) Results of Operations | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Income (Millions USD)** | $230 | $141 | +$89 | | **Adjusted EBITDA (Millions USD)** | $242 | $221 | +$21 | | **Motor fuel gallons sold (Billions)** | 2.11 | 1.93 | +9.0% | | **Motor fuel profit (Cents/Gallon)** | 11.7 | 12.9 | -1.2 | - Adjusted EBITDA increased by **$21 million** year-over-year, primarily due to a **9%** increase in fuel gallons sold and increased profit from recent acquisitions, partially offset by a **$15 million** increase in operating costs[78](index=78&type=chunk)[82](index=82&type=chunk) - The significant increase in Net Income was primarily due to favorable inventory valuation adjustments, which were **$130 million** in Q1 2024 compared to **$29 million** in Q1 2023[78](index=78&type=chunk)[80](index=80&type=chunk) Liquidity and Capital Resources - As of March 31, 2024, the company had **$215 million** in cash and **$870 million** of available borrowing capacity on its Credit Facility[84](index=84&type=chunk) - In April 2024, the Partnership issued **$1.5 billion** in senior notes (**$750 million** due 2029 and **$750 million** due 2032) to fund the NuStar acquisition and repay NuStar's debt[95](index=95&type=chunk) - Total capital expenditures for Q1 2024 were **$41 million**, consisting of **$27 million** for growth capital and **$14 million** for maintenance capital[93](index=93&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on variable-rate debt, with a 1% change impacting annual interest expense by $6.3 million, and commodity price risk on its ~$900 million inventory, managed with derivatives - The company is exposed to interest rate risk on its **$625 million** of outstanding variable-rate borrowings, where a one percentage point change in floating rates would alter annual interest expense by approximately **$6.3 million**[99](index=99&type=chunk) - The company faces commodity price risk on its **~$900 million** of petroleum product inventory and uses derivative instruments to hedge this risk, with an aggregate unrealized loss of **$4.8 million** on these positions as of March 31, 2024[101](index=101&type=chunk)[102](index=102&type=chunk) [Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls during the quarter - Based on an evaluation by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of March 31, 2024[105](index=105&type=chunk) - There were no changes in internal control over financial reporting during the first quarter of 2024 that have materially affected, or are reasonably likely to materially affect, these controls[106](index=106&type=chunk) PART II [Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any litigation expected to have a material adverse impact on its financial condition or operations - The company reports that it is not party to any litigation that is expected to have a material adverse impact on its financial condition or operations[109](index=109&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) New and heightened risks from recent acquisitions include increased dependency on diverse product demand, international operational risks, heightened regulatory scrutiny, and customer retention challenges - The recent acquisitions of NuStar and Zenith terminals introduce new and more significant risks related to their specific operations[111](index=111&type=chunk) - The business is now more dependent on the demand for and supply of crude oil, refined products, renewable fuels, and anhydrous ammonia, which are subject to global price fluctuations and factors like alternative fuel adoption and economic conditions[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - With assets in Mexico and Europe, the company is exposed to additional risks including political and economic instability, currency fluctuations, and different legal and regulatory requirements[117](index=117&type=chunk)[121](index=121&type=chunk) - Certain acquired interstate common carrier pipelines are subject to regulation by the FERC and the Surface Transportation Board (STB), which could adversely impact the ability to set rates and recover costs[124](index=124&type=chunk)[128](index=128&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the NuStar merger agreement, debt indentures, and CEO/CFO certifications - Key exhibits filed include the Agreement and Plan of Merger with NuStar Energy L.P., various debt indentures, and Sarbanes-Oxley certifications from the CEO and CFO[133](index=133&type=chunk)[137](index=137&type=chunk)