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Can Valero Energy (VLP) Keep the Earnings Streak Alive This Quarter?

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Valero Energy Partners LP ( VLP ), a firm in the Oil & Gas Pipelines industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, VLP has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, VLP expected to earn 32 cents per share, while it actually produced earnings of 36 cents, a beat of 12.5%. Meanwhile, for the most recent quarter, the company looked to earn 44 cents per share, when it actually saw an earnings of 54 cents per share instead, representing 22.7% positive surprise.

Thanks in part to this history, estimates have moved higher for Valero Energy over the last 60 days. In fact, the Earnings ESP for VLP is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for VLP, as the firm currently has a Zacks Earnings ESP of 3.85%, so another beat could be around the corner.

This is particularly true when you consider that VLP has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that VLP could see another beat at its next report, especially if recent trends are any guide.

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VALERO EGY PTNR (VLP): Free Stock Analysis Report

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


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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