Marathon Petroleum Set to Reveal Q3 Earnings Amid Market Expectations
Marathon Petroleum Corporation (MPC) plays a crucial role in the energy industry, concentrating on refining, marketing, and midstream operations. The company, headquartered in Findlay, Ohio, boasts a market cap of $55.8 billion. It refines crude oil, markets various petroleum products, and manages extensive transportation and logistics systems mainly within the United States. MPC is scheduled to disclose its Q3 earnings prior to market opening on Tuesday, Nov. 5.
Analysts predict that the refiner will report a profit of $0.97 per share, marking a significant drop of 88.1% from the $8.14 per share posted in the same quarter last year. However, it’s noteworthy that Marathon Petroleum has consistently outperformed Wall Street’s EPS projections over the last four quarters, surpassing expected results by 35.5% in Q2 2024.
For fiscal 2024, analysts expect Marathon Petroleum to report an EPS of $8.71, which is a decline of 63.1% from $23.63 in fiscal 2023. Yet, looking ahead to fiscal 2025, EPS is forecasted to rebound with a growth rate of 21.4%, reaching $10.57.
MPC stock has risen 6.7% year-to-date, although this is less than the S&P 500 Index’s ($SPX) nearly 23% gains and the Energy Select Sector SPDR Fund’s (XLE) 7.8% returns during the same period.
Shares of Marathon Petroleum experienced a notable increase of 5.5% on August 6, after the company announced a better-than-expected Q2 adjusted EPS figure of $4.12. This improvement was driven by higher crude processing volumes and robust performance in its midstream operations. Despite facing lower refining margins, Marathon managed to process an impressive 97% of its crude capacity, achieving a total throughput of 3.1 million barrels per day, which helped mitigate the adverse effects of reduced margins. Additionally, revenue exceeded expectations, coming in at $38.4 billion, which bolstered investor confidence.
The general outlook for Marathon Petroleum stock is mixed but leans towards optimism, reflected in an overall “Moderate Buy” rating. Out of 18 analysts following the stock, 12 recommend a “Strong Buy,” while six suggest a “Hold.” Currently, MPC is trading below the average analyst price target of $177.89.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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