Houston, Texas-based Phillips 66 (PSX) is an energy manufacturing and logistics company. Valued at a market cap of $39.7 billion, the company processes, transports, stores, and markets petroleum and petrochemical products. It is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Friday, Apr. 25.
Prior to this event, analysts project this energy company to report a profit of $0.42 per share, down by a massive 77.9% from $1.90 per share in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in three of the last four quarters, while missing on another occasion. Its loss of $0.15 per share in the previous quarter outpaced the consensus estimates by 25%.
For the full year, analysts expect PSX to report EPS of $5.09, down by a notable 17.2% from $6.15 in fiscal 2024. Nonetheless, its EPS is expected to rebound, growing by a strong 114% year over year to $10.89 in fiscal 2026.
PSX has fallen 41.1% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 3.2% gain, and the Energy Select Sector SPDR Fund’s (XLE) 19.3% decline over the same time frame.
On Jan. 31, shares of PSX plunged nearly 2.5% following its Q4 earnings release despite delivering a better-than-expected performance. Its adjusted loss of $0.15 per share declined from an earnings of $3.09 per share recorded in the previous year's quarter, which might have dampened investor confidence. The decline in profits across most of its segments, led by a sharp fall in its refining segment profits, was a key contributor to the overall drop in earnings. The setback was compounded by weakening refined product demand in the U.S. and China, along with the impact of new refining capacity coming online.
Wall Street analysts are moderately optimistic about PSX’s stock, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, nine recommend "Strong Buy," one advises a “Moderate Buy,” and eight suggest “Hold.” The mean price target for PSX is $138.50, which indicates a notable 42.2% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
