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Phillips 66 (PSX) Q1 Earnings Miss, Revenues Beat Estimates

Phillips 66PSX posted adjusted first-quarter 2016 earnings of $0.67 per share missing the Zacks Consensus Estimate of $0.86. The bottom line was also below the year-ago quarter figure of $1.51. Lower earnings from all its segments resulted in the decline.

Phillips 66 (PSX) EPS BNRI & Surprise Percent - Last 5 Quarters | FindTheCompany

Quarterly revenues of $17.8 billion were significantly lower than the year-ago quarter level of $23.4 billion. The top line, however, beat the Zacks Consensus Estimate of $16.9 billion.

Segment Results

Midstream

The segment generated adjusted quarterly earnings of $65 million compared with $67 million in the year-ago quarter. Lower contribution from the NGL business hampered the results.

Chemicals

The segment generated adjusted earnings of $156 million, down from $203 million in the comparable quarter last year. Lower polyethylene sales prices and lower margins led to the decrease.

Refining

The segment generated adjusted earnings of $86 million compared with $538 million in the prior-year quarter. Worldwide lower gasoline and distillate margins led to the decline. During the quarter, Phillips 66's refining utilization and clean product yields were at 94% and 82%, respectively.

Marketing and Specialties (M&S)

Segmental earnings were $205 million, down from $304 million in the comparable quarter last year.

Financial Condition

In the reported quarter, Phillips 66 generated $258 million of cash from operations. It also returned capital worth $687 million to shareholders. Of this, $296 million was disbursed as dividends, while $391 million was used to repurchase 5 million shares of common stock.

As of Mar 31, 2016, cash and cash equivalents were $1.7 billion alongside $8.8 billion of debt. The company's debt-to-capitalization ratio was 27%.

Zacks Rank

Phillips 66 currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the oil and gas industry include ReneSola Ltd. SOL , FutureFuel Corp. FF and Braskem S.A. BAK . All these stocks sport a Zacks Rank #1 (Strong Buy).

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BRASKEM SA (BAK): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

FUTUREFUEL CORP (FF): Free Stock Analysis Report

PHILLIPS 66 (PSX): 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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