Have you been eager to see how Marathon Petroleum (NYSE:MPC) – a leading downstream operator – performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Findlay, OH-based company’s earnings release this morning:
About Marathon Petroleum: Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company operates in three segments: Refining and Marketing, Speedway (Retail), and Midstream.
Zacks Rank & Surprise History: Currently, Marathon Petroleum has a Zacks Rank #3 (Hold) but that could change following its third quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coming to earnings surprise history, the company has a mixed record: it’s gone past estimates in two of the last four quarters resulting in an average positive surprise of 186.35%.
Marathon Petroleum Corporation Price and EPS Surprise
Marathon Petroleum Corporation Price and EPS Surprise | Marathon Petroleum Corporation Quote
We have highlighted some of the key details from the just-released announcement below:
Earnings Beat Estimate: Earnings per share came in at $1.77, ahead of the Zacks Consensus Estimate of $1.45. Higher margins led to the outperformance.
Revenue Came in Higher than Expected: Marathon Petroleum posted revenues of $19,386 million, beating the Zacks Consensus Estimate of $17,808 million.
Total Costs:Total costs and expenses came in at $17,810 million, up 11.1% year-over-year.
Key Stats: Operating income from the Refining & Marketing segment – which is the main contributor to Marathon Petroleum earnings – was $1,097 million compared with $252 million in the year-ago quarter. The jump reflects wider gross margin.
Total refined product sales volumes were 2,357 thousand barrels per day (mbpd), up from the 2,316 mbpd in the year-ago quarter. Moreover, throughput improved from 1,926 mbpd in the year-ago quarter to 2,017 mbpd.
Income from the Speedway retail stations totaled $209 million, same as the year-ago period. Contributions from a new joint agreement with Pilot Flying J and lower operating costs were offset by lower volumes, decrease in light product margin and fall in merchandise profitability.
Finally, Midstream segment profitability was $355 million, up from $310 million in the third quarter of 2016. Earnings were buoyed by strength in volumes gathered, processed and fractionated.
Share Performance: Shares of Marathon Petroleum have gained 8% during the third quarter, underperforming the industry’s 11.5% increase.
Check back later for our full write up on this Marathon Petroleum earnings report later!
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Marathon Petroleum Corporation (MPC): Free Stock Analysis Report
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