Based in Findlay, Ohio, Marathon Petroleum Corporation (MPC), with a market cap of $58.2 billion, operates as a leading independent refiner, transporter, and marketer of petroleum products. The company is slated to announce its fiscal Q2 earnings results before the market opens on Tuesday, Aug. 6.
Ahead of this event, analysts expect the refiner to report a profit of $3.83 per share, representing a 28% decrease from $5.32 per share in the year-ago quarter. The company has consistently exceeded Wall Street's earnings expectations in the past four quarters. The company reported an EPS of $2.78 in the most recent quarter, exceeding the consensus EPS estimate by a 9.9% margin due to robust demand for refined products.
For fiscal 2024, analysts expect MPC to report EPS of $13.84, marking a decline of 41.4% from $23.63 in fiscal 2023. However, EPS is expected to rebound in fiscal 2025, with an anticipation of a 10.7% annual jump, reaching $15.32.
In 2024, shares of Marathon Petroleum surged 11.8%, underperforming the broader S&P 500 Index's ($SPX) 15.4% gain but outpacing the S&P 500 Energy Sector SPDR's (XLE) 10.2% returns over the same period on a YTD basis.
Marathon Petroleum’s stock rallied in January, propelled by its robust Q4 results and plans to cut capital spending, which is expected to boost free cash flow and enhance shareholder returns. However, the stock experienced a notable 9.4% drop on Apr. 30 after its Q1 earnings report, primarily due to unexpectedly high turnaround expenses and a significant 27% drop in refining and marketing margins. In addition, lower refinery utilization and throughput contributed to investor concerns despite the earnings beat.
Analysts' consensus view on Marathon Petroleum stock remains cautiously optimistic, with a "Moderate Buy" rating overall. Out of 16 analysts covering the stock, 11 recommend a "Strong Buy," and five give a "Hold" rating, a consensus that has remained fairly steady over the past three months.
The average analyst price target for MPC is $196.06, suggesting a potential upside of 18.7% from the current levels.
On the date of publication, Sohini Mondal 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.
