Why Has Valero Energy Stock Trended Higher Over The Last Month?

November 14th, 2019 by Trefis Team

Valero Energy (NYSE:VLO) has seen its stock price rise by 13% over the last month, following its stronger than expected Q3 results. Revenues came in at $27.25 billion, about $1.3 billion ahead of consensus, while adjusted EPS also beat street estimates, as the company benefited from new projects including an alkylation unit, pipelines, and terminals project. Operating cash flows also saw a meaningful year-over-year increase. That said, the company’s performance was down on a year-over-year basis due to weaker refining operations, which are being impacted by narrower WTI to Brent crude spreads. Below, we take a look at how the company fared in recent years and what the outlook could be like.

We ‘step back’ from these recent swings to review Valero Energy’s performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Has Valero Energy Stock Gained 13% Over The Last Month?, reviews the near term reasons and the big picture.

The context for the last few years:

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A closer look At Valero Energy’s Total Revenues over the last few years and the outlook

Total Revenues for Valero Energy significantly increased from $94.0 Bil in 2017 to $117 Bil in 2018; an increase of 24.5%.

This compares with Total Revenues growth of:

  • -32.9% in 2015
  • -13.8% in 2016
  • 24.2% in 2017

We expect Total Revenues growth to be -8.6% in 2019.

A closer look At Valero Energy’s Total Expenses over the last few years and the outlook

Total Expense for Valero Energy significantly increased from $90.8 Bil in 2017 to $113 Bil in 2018; an increase of 24.3%.

This compares with Total Expense growth of:

  • -34.7% in 2015
  • -11.4% in 2016
  • 25.2% in 2017

We expect Total Expense growth to be -8% in 2019.

How does Valero Energy’s Revenue Growth compare with rivals?

For more details on how Valero Energy’s Revenue Growth compares with Exxon, BP, and Chevron, view our interactive dashboard analysis.

How has Valero Energy’s EBT trended?

EBT for Valero Energy increased substantially by 32.0% from $3.21 Bil in 2017 to $4.23 Bil in 2018.

We expect EBT to decline by 31% in 2019, to about $2.9 Bil.

How has Valero Energy’s Net Income and EPS trended?

For more information on Valero Energy’s Net Income and EPS, view our interactive dashboard analysis.

 

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