Marathon Petroleum Q4 Earnings Drop but Beat Expectations

Marathon Petroleum's fourth-quarter earnings report shows a decline from the previous year, yet it beat analyst expectations. This mixed performance could influence investor sentiments in upcoming trading sessions.

Date: 04-02-2025

AI Rating: 5

Overview of Financial Performance

Marathon Petroleum Corporation (MPC) reported its fourth-quarter earnings, revealing a decrease in net income compared to the same period last year. The company's net income totaled $371 million, or $1.15 per share, down significantly from $1.451 billion, or $3.84 per share, in the prior year. This indicates a substantial decline in profitability.

Earnings Per Share (EPS)

The decrease in EPS from $3.84 to $1.15 reflects a downward trend in earnings. However, the adjusted earnings reported at $0.77 per share exceeded analyst expectations of $0.02 per share. This could lead to a positive sentiment among investors, as exceeding estimates may bolster confidence despite the overall drop.

Revenue Growth

Marathon Petroleum's revenue for the quarter also saw a decline of 9.1%, falling to $33.466 billion from $36.823 billion year-over-year. This reduction in revenue could be concerning for investors, indicating potential challenges in maintaining sales levels.

Conclusion

The report presents a mixed picture for Marathon Petroleum, with significant drops in both net income and revenue. However, the ability to exceed adjusted earnings estimates may provide some stabilizing reassurance for investors looking at future performance.

Stocks: MPC