Marathon Petroleum Set to Reveal Fourth-Quarter Earnings Amidst Downtime
Marathon Petroleum Corporation (MPC), headquartered in Findlay, Ohio, stands as a significant player in the integrated downstream energy sector. With a market capitalization of $45.7 billion, the company operates primarily through two segments: Refining & Marketing and Midstream. As anticipation builds, Marathon Petroleum is preparing to disclose its fourth-quarter financial results before the market opens on Tuesday, February 4.
Fourth-Quarter Earnings Expectations
Analysts project that Marathon Petroleum will report a non-GAAP profit of $0.26 per share, which marks a considerable drop of 93.5% from the reported $3.98 per share in the same quarter last year. Nonetheless, the company has demonstrated a strong track record, surpassing Wall Street earnings estimates consistently over the past four quarters. Although its adjusted EPS decreased significantly by 77% year-over-year to $1.87 in the latest quarter, it still exceeded analysts’ expectations by 92.8%.
Future Earnings Projections
For the entire fiscal year 2024, MPC is anticipated to achieve an adjusted EPS of $9.38, reflecting a decrease of 60.3% from $23.63 in fiscal 2023. Looking ahead to fiscal 2025, earnings are expected to decline further by 4.3% year-over-year, landing at $8.98 per share.
Stock Performance and Market Challenges
Over the past year, MPC stock has fallen by 6.9%, lagging behind the S&P 500 Index’s gains of 21.8% and the Energy Select Sector SPDR Fund’s (XLE) returns of 8.4% in the same period. The oil refining and marketing sector is currently facing difficulties due to tightening market crack spreads, which are adversely affecting refiners’ margins. Consequently, Marathon Petroleum reported a 14.9% year-over-year decline in Q3 total revenues and other income, totaling $35.4 billion, with a striking 71.6% decrease in operating income to $1.3 billion.
Despite these market pressures, Marathon Petroleum’s share price increased by 3.2% following the release of its Q3 results on November 5, as the company’s revenue exceeded Wall Street expectations and included a notable earnings surprise. During the same quarter, MPC demonstrated its commitment to shareholders by repurchasing $3 billion in common stock and announcing an additional $5 billion share buyback authorization, alongside a 10% increase in the quarterly dividend.
Analyst Ratings and Price Targets
The consensus view on MPC stock remains moderately positive, earning an overall “Moderate Buy” rating. Among the 18 analysts covering the stock, 12 advocate for a “Strong Buy,” while six prefer a “Hold.” The average price target of $174.67 implies a 22.8% upside from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
