Valero(VLO) ZACKS·2025-01-27 15:11Core 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 1.29 due to a decline in refining throughput volumes [2]. - The Zacks Consensus Estimate for fourth-quarter earnings per share 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].