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Sunoco: On the Brink of Q4 Earnings Sunoco: On the Brink of Q4 Earnings

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Sunoco LP is anticipated to unveil its much-awaited fourth-quarter 2023 earnings on Feb 14, in the early hours of the trading day.

In the prior quarter, the company outperformed the Zacks Consensus Estimate of $1.11 with a commanding $2.95 per unit. Notably, this stupendous feat was fueled by an augmentation in the number of fuel gallons sold, combined with a reduction in the total cost of sales and operating expenses. Over the last four quarters, Sunoco’s earnings surpassed the Zacks Consensus Estimate twice, undershot the same twice, and averaged an impressive 28.3% surprise. This performance is graphically depicted below.

Sunoco LP: An Intimate Look at Price and EPS Performance

The price and earnings per share (EPS) performance of Sunoco LP can be viewed here.

Our team of financial analysts has provided a detailed estimate trend for the impending fourth-quarter earnings of Sunoco. The Zacks Consensus Estimate for earnings stands at 96 cents per unit, exhibiting no revisions over the past 30 days but indicating a noteworthy improvement from the year-ago quarter. On the revenue front, the Zacks Consensus Estimate for the upcoming quarter of 2023 lands at $5.4 billion, marking an 8.4% drop from the corresponding figure in the previous year.

Dissecting the Determinants

Diminished demand for motor fuels, largely influenced by telecommuting norms and the escalating preference for electric vehicles, might have contributed to a decline in the sale of motor fuel for Sunoco in the December quarter. The Zacks Consensus Estimate for motor fuel sold in the upcoming quarter demonstrates a reduction from the corresponding metrics in the year-ago period.

Given that Sunoco is a premier distributor of motor fuel to convenience stores and independent dealers, it is likely that the diminution in fuel demand could have dented its financials.

Whispers on Earnings

Regrettably, our time-tested model does not hint at a favorable earnings surprise for Sunoco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) does heighten the likelihood of an earnings beat. Unfortunately, this is not the prevailing scenario for Sunoco, as substantiated below.

Earnings ESP: SUN’s Earnings ESP encompasses a modest 0.00%. For extensive stock insights just before the official announcements, consider leveraging our meticulous Earnings ESP Filter.

Zacks Rank: Presently, Sunoco lodges a Zacks Rank #3.

Promising Alternatives

If you are eager to capitalize on promising earnings prospects, consider casting your eye on the following trio of entities, which boast the apt blend of attributes to potentially surpass earnings estimates this earnings season.

1. Western Midstream Partners LP (WES) currently touts an Earnings ESP of +4.01% and holds a Zacks Rank #2. Access the complete list of today’s Zacks #1 Rank stocks here.

2. Cheniere Energy, Inc. (LNG) currently boasts an Earnings ESP of +5.55% and upholds a Zacks Rank #3.

3. Energy Transfer LP (ET) owns an Earnings ESP of +0.69% and is presently a Zacks #1 Ranked contender in the market.

For real-time updates on upcoming earnings releases, rely on the Zacks Earnings Calendar.

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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3%, and +673.0%.

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Sunoco LP (SUN) : Free Stock Analysis Report

Western Midstream Partners, LP (WES) : Free Stock Analysis Report

Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report

Energy Transfer LP (ET) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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