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Valero Energy, refiners bounce off early lows

  • Valero Energy (VLO -0.2%) climbs off sharp early losses after reporting Q2 guidance below Wall Street consensus.
  • Wells Fargo analysts expect Q2 throughput volumes will be generally as expected, while capture rates will fall short of prior expectations likely due to weaker crack spreads; it lowers its Q2 and FY 2014 EPS estimates to a respective $1.18 and $5.87 from $1.31 and $6.00.
  • Raymond James analysts continue to “tread lightly” with the refiners, skeptical that WTI-Brent spreads can reach heights needed to drive EPS expectations higher for 2015 and beyond.
  • Other refiners are mostly higher after early losses: TSO +0.7%, HFC +0.3%, MPC +0.7%, PSX +0.4%, ALJ -0.5%, WNR +0.4%, CVI +0.8%.
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Comments (4)
  • RogerMexico
    , contributor
    Comments (21) | Send Message
     
    This market is upside down. Good is bad and bad is good. Revised earnings drop over 10%, and the stock is up 1%. Think I'm going to take my money and invest in the horse races..
    15 Jul 2014, 12:45 PM Reply Like
  • mjb0909
    , contributor
    Comments (173) | Send Message
     
    DelMar opens soon & good luck to you. But I would remind you of "Econ 101" ; SUPPLY & DEMAND"; make the market place.
    15 Jul 2014, 02:48 PM Reply Like
  • brent_vossler
    , contributor
    Comments (218) | Send Message
     
    DelMar is lovely this time of year. May be more expensive than the last time attended- 1974....
    15 Jul 2014, 02:50 PM Reply Like
  • Peregrinus
    , contributor
    Comments (124) | Send Message
     
    I’m new to this market sector although I recently went long on VLO by selling a few PUTs. If the revised (lower) EPS for VLO is now $6 then the P/E is about 8: pretty good when 10 year bonds are yielding 2.5%. The recent ramping of oil production in the US should increase the demand for refining capacity and probably open export markets for refined products. What’s not to like here?
    15 Jul 2014, 06:38 PM Reply Like
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