Phillips 66 Set to Report Q1 Earnings Amid Mixed Analyst Views

Phillips 66 (PSX), based in Houston, Texas, operates as an energy manufacturing and logistics company. With a market capitalization of $39.7 billion, the firm engages in processing, transporting, storing, and marketing petroleum and petrochemical products. The company plans to announce its fiscal Q1 earnings for 2025 before the market opens on Friday, April 25.

Analysts Forecast Significant Earnings Drop

Leading up to the announcement, analysts anticipate that PSX will report earnings of $0.42 per share, reflecting a substantial decrease of 77.9% from last year’s $1.90 per share in the same quarter. Over the past four quarters, Phillips 66 has surpassed Wall Street’s earnings estimates three times, while falling short once. In the last quarter, the company’s adjusted loss of $0.15 per share exceeded analysts’ expectations by 25%.

Full Year Earnings Outlook

Looking at the broader fiscal year, analysts project PSX to report an earnings per share (EPS) of $5.09, which represents a decline of 17.2% from the $6.15 recorded in fiscal 2024. However, projections indicate a significant bounce back the following year, with EPS expected to grow by 114% year-over-year to $10.89 in fiscal 2026.

Stock Performance and Recent Challenges

In the last 52 weeks, PSX’s stock has fallen by 41.1%, considerably underperforming the S&P 500 Index, which gained 3.2%, and the Energy Select Sector SPDR Fund (XLE), which declined by 19.3% in the same period.

After its Q4 earnings release on January 31, PSX shares tumbled nearly 2.5%, even though the results exceeded expectations. The adjusted loss of $0.15 per share was a sharp decline from the $3.09 earnings per share reported in the same quarter last year. This substantial decline in profits primarily stemmed from difficulties in its refining segment and was exacerbated by weakening demand for refined products in both the U.S. and China, along with the introduction of new refining capacity.

Analyst Ratings and Price Targets

Analysts on Wall Street are moderately optimistic about PSX’s stock, assigning it a “Moderate Buy” rating overall. Among 18 analysts covering PSX, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” and eight propose a “Hold.” The average price target for the stock stands at $138.50, presenting a potential upside of 42.2% from current market levels.

On the date of publication, Neharika Jain did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.