Core Viewpoint - Valero Energy Corporation (VLO) reported better-than-expected fourth-quarter 2024 results, with both earnings and revenues surpassing the Zacks Consensus Estimate, despite a subsequent 2.3% decline in stock price following the earnings release on January 30 [1]. Valero's Refining Business - Valero operates 15 refineries across the United States, Canada, and the United Kingdom, with a combined throughput capacity of 3.2 million barrels per day [2]. Better-Than-Expected Q4 Results - The company reported adjusted earnings of 64 cents per share, exceeding the Zacks Consensus Estimate of 13 cents, although this was a decrease from $3.57 in the same quarter last year [3]. - Revenues fell to $30.76 billion from $35.41 billion year-over-year, but still beat the Zacks Consensus Estimate of $30.73 billion [4]. Operational Performance - Adjusted operating income in the Refining segment was $441 million, down from $1.6 billion in the prior-year quarter, primarily due to significantly lower refining margins [5]. - Valero processed a record volume of heavy sour crude, showcasing the flexibility of its refining system despite lower margins [5]. Future Outlook - The company anticipates that refining margins will be supported by low light product inventories as the driving season approaches [6]. - Valero is also working on an FCC Unit Optimization project at St. Charles to enhance high-value product yields, including high-octane alkylate [6]. Throughput Volumes & Margins - In Q4, Valero's refining throughput volumes were 2,995 thousand barrels per day, consistent with the previous year's figure, and above the estimate of 2,688 MBbls/d [7]. - The refining margin per barrel of throughput decreased to $8.44 from $12.89 year-over-year, while the estimate was $10.8 [8]. Performance of Big Energy Players - Other major energy companies, including Exxon Mobil Corporation, Chevron Corporation, and SLB, have also reported fourth-quarter earnings, with ExxonMobil and SLB beating the Zacks Consensus Estimate, while Chevron missed [9].

Core Viewpoint - Valero Energy (VLO) has seen significant interest, with a recent stock performance of +12.3% over the past month, outperforming the S&P 500's +2.1% and the Oil and Gas - Refining and Marketing industry's +5.8% [1] Earnings Estimates - Valero Energy is expected to report earnings of $0.77 per share for the current quarter, reflecting a year-over-year decline of -79.8%, with a consensus estimate change of -16.9% over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is $7.86, indicating a year-over-year change of -7.3%, with a -9.3% change in estimates over the last month [4] - For the next fiscal year, the consensus earnings estimate is $10.63, representing a +35.2% change from the previous year, with a slight increase of +1.1% in the last month [5] Revenue Projections - The consensus sales estimate for the current quarter is $28.42 billion, indicating a year-over-year decline of -10.5% [8] - For the current fiscal year, the revenue estimate is $119.93 billion, reflecting a -7.7% change, while the next fiscal year's estimate is $122.35 billion, indicating a +2% change [8] Recent Performance - In the last reported quarter, Valero Energy generated revenues of $30.76 billion, a year-over-year decrease of -13.2%, with an EPS of $0.64 compared to $3.55 a year ago [9] - The reported revenues exceeded the Zacks Consensus Estimate of $30.73 billion by +0.09%, and the EPS surprise was +392.31% [10] - Over the last four quarters, Valero Energy surpassed consensus EPS estimates three times and revenue estimates two times [10] Valuation Metrics - Valero Energy is rated A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [14] - The evaluation of valuation multiples such as P/E, P/S, and P/CF is essential to determine if the stock is fairly valued, overvalued, or undervalued [12][13] Overall Outlook - The Zacks Rank 3 suggests that Valero Energy may perform in line with the broader market in the near term, despite the market buzz surrounding the company [15]

Group 1 - Valero Energy reported earnings of $0.64 per share, significantly exceeding expectations of $0.06 per share [1] - Earnings decreased from $1.14 per share in the previous quarter, but the earnings beat demonstrates the company's strong cost structure [1] Group 2 - The article emphasizes the long-term investment potential of equities in the energy sector, particularly focusing on income-producing assets [1]

Core Insights - Valero Energy Corporation (VLO) reported fourth-quarter 2024 adjusted earnings of 88 cents per share, exceeding the Zacks Consensus Estimate of 13 cents, but down from $3.55 in the same quarter last year [1] - Total quarterly revenues decreased to $30,756 million from $35,414 million year-over-year, although it surpassed the Zacks Consensus Estimate of $30,729 million [1] Revenue and Earnings Performance - The better-than-expected quarterly results were primarily driven by increased renewable diesel margins and lower total cost of sales, although these positives were partially offset by a decline in refining margins [2] - Total cost of sales decreased to $30,127 million from $33,540 million in the prior-year quarter, also below the estimate of $30,590.1 million, mainly due to a reduction in the cost of materials [9] Segmental Performance - Adjusted operating income in the Refining segment was $437 million, down from $1,577 million year-over-year, and missed the estimate of $1,296.5 million, impacted by significantly lower refining margins [3] - In the Ethanol segment, adjusted operating profit was $20 million, down from $205 million in the prior-year quarter, missing the estimate of $84.2 million due to a drop in ethanol margins [4] - The Renewable Diesel segment reported an operating income of $170 million, up from $84 million year-over-year, benefiting from higher renewable diesel margins despite a decline in sales volume to 3,356 thousand gallons per day from 3,773 thousand gallons [5] Throughput Volumes and Margins - Refining throughput volumes totaled 2,995 thousand barrels per day, consistent with the year-ago figure and above the estimate of 2,688 thousand barrels per day [6] - The refining margin per barrel of throughput decreased to $8.44 from $12.89 year-over-year, while refining operating expenses per barrel were $4.67 compared to $4.99 in the prior-year quarter [8] Capital Investment and Balance Sheet - Capital investment for the fourth quarter totaled $547 million, with $452 million allocated for sustaining the business [11] - At the end of the fourth quarter, the company had cash and cash equivalents of $4.7 billion, total debt of $8.1 billion, and finance lease obligations of $2.4 billion [11]

Core Insights - Valero Energy (VLO) reported quarterly earnings of $0.64 per share, significantly exceeding the Zacks Consensus Estimate of $0.13 per share, but down from $3.55 per share a year ago, indicating an earnings surprise of 392.31% [1] - The company achieved revenues of $30.76 billion for the quarter ended December 2024, slightly surpassing the Zacks Consensus Estimate by 0.09%, but down from $35.41 billion year-over-year [2] - Valero Energy's stock has increased by approximately 13.8% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Earnings Outlook - The future performance of Valero Energy's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $29.11 billion, and for the current fiscal year, it is $8.29 on revenues of $121.74 billion [7] Industry Context - The Oil and Gas - Refining and Marketing industry, to which Valero Energy belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Delek US Holdings, is expected to report a significant loss, indicating potential challenges within the sector [9]

Financial Performance - Valero reported net income attributable to stockholders of $281 million, or $0.88 per share, for Q4 2024, down from $1.2 billion, or $3.55 per share, in Q4 2023[3]. - For the full year 2024, net income attributable to stockholders was $2.8 billion, or $8.58 per share, compared to $8.8 billion, or $24.92 per share, in 2023[4]. - Net income attributable to Valero Energy Corporation stockholders for the three months ended December 31, 2024, was $281 million, compared to $1,202 million for the same period in 2023, a decrease of 76.7%[31]. - Adjusted net income attributable to Valero Energy Corporation stockholders for the year ended December 31, 2024, was $2,739 million, down from $8,850 million in 2023, a decline of 69.0%[31]. - Total revenues for the year ended December 31, 2024, were $129,881 million, a decrease of 10.2% from $144,766 million in 2023[29]. - Net cash provided by operating activities was $1.1 billion in Q4 2024, with adjusted net cash provided by operating activities at $951 million[9]. - Valero's adjusted net cash provided by operating activities for the year ended December 31, 2024, was $5,517 million, a decrease of 50.0% from $11,043 million in 2023[59]. Segment Performance - The Refining segment reported operating income of $437 million for Q4 2024, a significant decrease from $1.6 billion in Q4 2023, with throughput volumes averaging 3.0 million barrels per day[5]. - The Renewable Diesel segment achieved operating income of $170 million in Q4 2024, up from $84 million in Q4 2023, with sales volumes averaging 3.4 million gallons per day[6]. - Operating income for the refining segment for the year ended December 31, 2024, was $3,971 million, down from $11,511 million in 2023, representing a decline of 65.5%[29]. - Refining operating income for Q4 2024 was $437 million, a decrease of 72.2% compared to $1,577 million in Q4 2023[34]. - Renewable Diesel operating income increased to $170 million in Q4 2024 from $84 million in Q4 2023, representing a growth of 102.4%[34]. - Ethanol operating income decreased to $20 million in Q4 2024 from $190 million in Q4 2023, a decline of 89.5%[34]. Shareholder Returns - Valero returned $601 million to stockholders in Q4 2024, including $339 million in dividends and $262 million in stock buybacks, resulting in a payout ratio of 63% of adjusted net cash provided by operating activities[12]. - The company increased its quarterly cash dividend by 6% to $1.13 per share on January 16, 2025[13]. - The company declared dividends per common share of $1.07 for the three months ended December 31, 2024, compared to $1.02 in the same period of 2023, representing a 4.9% increase[61]. Debt and Capital Expenditures - Valero's total debt at the end of 2024 was $8.1 billion, with a debt to capitalization ratio of 17%[14]. - The total debt of Valero as of December 31, 2024, was $8,085 million, down from $9,218 million in 2023, reflecting a reduction of 12.3%[59]. - Capital expenditures attributable to Valero for the year ended December 31, 2024, were $1,888 million, an increase of 7.4% compared to $1,758 million in 2023[61]. - The capital investments expected for the year ending December 31, 2025, are projected to be $1,950 million after adjustments[61]. Operational Developments - The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant was completed and is now operational, allowing for the upgrade of approximately 50% of its renewable diesel production capacity to SAF[15]. - Valero is progressing with an FCC Unit Optimization project at the St. Charles Refinery, estimated to cost $230 million and expected to be completed in 2026[16]. Market Conditions - Brent crude oil price averaged $73.98 per barrel in Q4 2024, down from $82.72 per barrel in Q4 2023, a decrease of 11%[56]. - The average market reference price for ULS diesel was $2.23 per gallon for the three months ended December 31, 2024, down 21.8% from $2.85 per gallon in 2023[57]. - The biodiesel Renewable Identification Number (RIN) price was $0.66 per RIN for the three months ended December 31, 2024, down 21.4% from $0.84 in 2023[57]. Performance Metrics - The refining margin is a key performance measure, defined as refining segment operating income excluding operating expenses, depreciation, and amortization, which is critical for evaluating the segment's financial performance[69]. - Renewable Diesel margin is similarly defined and is essential for assessing the Renewable Diesel segment's operating and financial performance[69]. - Ethanol margin is defined as Ethanol segment operating income excluding operating expenses and is a significant measure for evaluating the Ethanol segment's performance[69]. - Adjusted refining operating income for the period is an important measure as it excludes non-core operating performance items[69].

Group 1 - Oil prices have experienced significant fluctuations in 2023, with WTI crude oil nearing $80 per barrel in January due to strong economic growth in China and the US [1] - The increase in oil prices is attributed to robust economic indicators, suggesting a potential rise in demand for crude oil [1] Group 2 - The article does not provide specific company or industry insights beyond the general trends in oil prices and economic conditions [1]

Core Viewpoint - Valero Energy Corporation (VLO) is expected to report a significant decline in earnings and revenues for the fourth quarter of 2024, with challenges stemming from weaker global refinery margins and reduced demand for refined products [2][3][5]. Earnings Performance - In the last reported quarter, Valero's adjusted earnings were $1.14 per share, missing the Zacks Consensus Estimate of $1.29 due to a decline in refining throughput volumes [2]. - The Zacks Consensus Estimate for fourth-quarter earnings per share is $0.14, reflecting a 96.06% decline from the prior year's figure [2]. - The estimated revenue for the fourth quarter is $30.75 billion, indicating a 13.16% decline from the previous year [3]. Factors Influencing Performance - Valero is expected to have maintained stable performance due to high refinery utilization rates, despite a 10% drop in spot prices for West Texas Intermediate Crude, which may have reduced input costs [4]. - Weaker global refinery margins are anticipated due to declining demand for refined petroleum products amid a global economic slowdown, with crack spreads showing contraction compared to the previous quarter [5]. - Lower margins on gasoline and distillates, particularly in the U.S. Gulf Coast, alongside high inflation and increased competition, are likely to have negatively impacted Valero's profitability [6]. Earnings Expectations - The current model does not indicate an earnings beat for Valero, with an Earnings ESP of -21.93% and a Zacks Rank of 3 (Hold) [7].

Core Viewpoint - Valero Energy (VLO) has gained attention as one of the most searched stocks, with significant recent performance and earnings estimates influencing its future stock price [1][2]. Earnings Estimates - Valero Energy is expected to report earnings of $0.14 per share for the current quarter, reflecting a year-over-year decline of -96.1% [5]. - The consensus earnings estimate for the current fiscal year is $7.93, indicating a decrease of -68.2% from the previous year [5]. - For the next fiscal year, the earnings estimate is $8.01, showing a slight increase of +1.1% compared to the prior year [6]. - Over the last 30 days, the earnings estimates have decreased by -12.7% for the current quarter and -12.3% for the current fiscal year [5][6]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is $30.75 billion, representing a year-over-year decline of -13.2% [9]. - For the current and next fiscal years, the sales estimates are $129.88 billion and $121.48 billion, indicating changes of -10.3% and -6.5%, respectively [9]. Last Reported Results and Surprise History - In the last reported quarter, Valero Energy generated revenues of $32.88 billion, down -14.4% year-over-year [10]. - The reported EPS was $1.14, compared to $7.49 a year ago, with a revenue surprise of -0.5% and an EPS surprise of -11.63% [11]. Valuation - Valero Energy is graded A in the Zacks Value Style Score, suggesting it is trading at a discount compared to its peers [15]. - The evaluation of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining the stock's intrinsic value [12][13]. Zacks Rank - Valero Energy holds a Zacks Rank of 3 (Hold), indicating it may perform in line with the broader market in the near term [7][16].

Core Viewpoint - Valero Energy (VLO) is anticipated to report a significant year-over-year decline in earnings due to lower revenues, which could influence its near-term stock price depending on how actual results compare to consensus estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for January 30, 2025, with expectations of quarterly earnings at $0.14 per share, reflecting a year-over-year decrease of 96.1% [3]. - Revenues are projected to be $30.75 billion, down 13.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 12.71% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a strong predictive power for positive readings [7][8]. - Valero Energy's current Zacks Rank is 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Valero Energy was expected to post earnings of $1.29 per share but delivered only $1.14, resulting in a surprise of -11.63% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While Valero Energy does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].