Phillips 66 (PSX) Gears Up for Q4 Earnings: What's in Store?

Core Viewpoint - Phillips 66 is expected to report fourth-quarter 2023 earnings on January 31, with a consensus estimate indicating a significant decline in earnings and revenues compared to the previous year [1][2]. Estimate Trend - The Zacks Consensus Estimate for fourth-quarter earnings per share is $2.41, reflecting two upward and four downward revisions in the last 60 days, indicating a notable decline from the previous year's figure [2]. - The estimated revenue for the fourth quarter is $34.3 billion, which represents a 16.1% decrease from the year-ago reported figure [2]. Factors to Consider - The company is likely to have stable earnings from its midstream business due to the integration of pipeline and storage assets with refining, marketing, specialties, and chemical segments [3]. - However, high oil prices and lower retail gasoline prices in the fourth quarter are expected to negatively impact refining operations, with adjusted pre-tax earnings from refining projected to decline nearly 40% year over year [3]. Earnings Whispers - The current model does not indicate an earnings beat for Phillips 66, as the Earnings ESP is 0.00% and the company holds a Zacks Rank of 3 (Hold) [4]. Stocks to Consider - Western Midstream Partners, LP has an Earnings ESP of +10.54% and a Zacks Rank of 2, scheduled to release fourth-quarter earnings on February 21 [5]. - Exxon Mobil Corporation has an Earnings ESP of +0.49% and a Zacks Rank of 3, with earnings scheduled for release on February 2 [5].