Phillips 66 (PSX) Gears Up for Q1 Earnings: What's in Store?

Core Viewpoint - Phillips 66 (PSX) is expected to report a decline in earnings for the first quarter of 2024, with adjusted earnings per share estimated at $2.16, reflecting a 48.7% decrease from the previous year [2] Earnings Performance - In the last reported quarter, PSX's adjusted earnings were $3.09 per share, surpassing the Zacks Consensus Estimate of $2.37 due to reduced costs, although this was partially offset by lower refining margins globally [1] - PSX has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 13.5% [1] Estimate Trend - The Zacks Consensus Estimate for first-quarter revenues is $31.1 billion, indicating an 11.5% decline from the year-ago figure [2] Factors Impacting Earnings - The midstream business, which includes pipelines and storage, is expected to generate stable earnings due to its lower sensitivity to commodity price fluctuations and integration with other segments [3] - Refining operations are anticipated to be negatively impacted by the disparity between high crude oil prices and lower retail gasoline prices, leading to decreased profitability [4] Earnings Whispers - The Earnings ESP for PSX is -4.23%, indicating a lower likelihood of an earnings beat, with the Most Accurate Estimate at $2.07 per share compared to the Zacks Consensus Estimate of $2.16 [5]