Sunoco LP Earnings Loom with Mixed Data Anticipated

Shares of Sunoco LP (SUN) are seeing increased attention as the company's upcoming earnings report is set to deliver critical insights. Despite an expected decline in EPS and revenue, the positive revisions in estimates may indicate a favorable outlook for investors.

Date: 14-09-2024

AI Rating: 5

Sunoco LP (SUN) closed at $53.50, showing a minor increase of +0.36% from the previous trading session. Despite this increase, it underperformed compared to the S&P 500's gain of 0.54%.

Over the past month, Sunoco's shares have seen a +2.32% increase, contrasting with the decline of 3.91% in the Oils-Energy sector and falling short of the S&P 500's increase of 4.86% during the same period.

Looking ahead to the anticipated earnings report, the consensus estimate forecasts an earnings per share (EPS) of $1.56, which indicates a significant decline of 47.12% compared to the same quarter last year. The expected revenue of $5.97 billion represents a decrease of 5.58% year-over-year. This projected EPS and revenue decline could indicate difficulty for the company, potentially affecting investor sentiment.

However, the broader yearly outlook looks more optimistic, with EPS estimates for the entire year adjusted to $9.29— a substantial increase of 154.52% from the prior year— and projected revenue of $23.72 billion, a modest increase of 2.82% year-over-year. These changes indicate a potential rebound and could positively influence stock prices if the company meets or exceeds these estimates.

Analyst revisions have shown a positive trend, with the Zacks Consensus EPS estimate rising by 15.49% recently. Sunoco LP currently holds a Zacks Rank of #3 (Hold), reflecting cautious optimism. This suggests some analysts maintain a positive outlook on potential business improvements, which can support stock performance in the near term.

In terms of valuation, the stock's Forward P/E ratio of 5.74 indicates it is trading at a discount compared to its industry average of 18.71. Such a low valuation might attract bargain hunters looking for opportunities within the sector.

Overall, while immediate earnings projections point to struggles with EPS and revenue, the hopeful long-term estimates and a strong valuation could balance out the market reaction.

Stocks: SUN