Sunoco (NYSE:SUN) Issues Earnings Results, Misses Expectations By $0.39 EPS

Key Points

• Sunoco reported quarterly EPS of $2.07, falling $0.39 short of the $2.46 analyst consensus, while revenue of $18.03 billion significantly exceeded the $11.76 billion estimate.
• The company raised its quarterly dividend to $1.0148, equivalent to approximately $4.06 annually and a 5.9% yield; the payout ratio is 89.6%.
• Analysts remain broadly positive, with Sunoco holding a consensus “Buy” rating and an average price target of $79.75, despite shares trading near $69.17 after a modest 0.7% gain.

Sunoco (NYSE:SUN - Get Free Report) released its quarterly earnings data on Tuesday. The oil and gas company reported $2.07 earnings per share for the quarter, missing the consensus estimate of $2.46 by ($0.39), RTT News reports. The company had revenue of $18.03 billion during the quarter, compared to the consensus estimate of $11.76 billion. Sunoco had a net margin of 2.88% and a return on equity of 18.78%. During the same quarter in the prior year, the company posted $0.64 earnings per share.

Sunoco Stock Up 0.7%

SUN traded up $0.48 during trading hours on Tuesday, hitting $69.17. 17,693 shares of the company's stock were exchanged, compared to its average volume of 488,910. The stock's 50-day moving average is $74.67 and its two-hundred day moving average is $68.49. Sunoco has a 1-year low of $49.98 and a 1-year high of $80.22. The company has a quick ratio of 0.83, a current ratio of 1.29 and a debt-to-equity ratio of 1.95. The stock has a market cap of $14.17 billion, a price-to-earnings ratio of 15.21 and a beta of 0.42.

Sunoco Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Friday, November 6th will be given a $1.0148 dividend. This is a boost from Sunoco's previous quarterly dividend of $1.0023. This represents a $4.06 dividend on an annualized basis and a dividend yield of 5.9%. The ex-dividend date of this dividend is Friday, November 6th. Sunoco's payout ratio is presently 89.60%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on SUN shares. JPMorgan Chase & Co. assumed coverage on shares of Sunoco in a report on Tuesday, October 20th. They set an "overweight" rating and a $87.00 price target for the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Sunoco in a research note on Tuesday, August 18th. Wells Fargo & Company upped their target price on shares of Sunoco from $77.00 to $82.00 and gave the company an "overweight" rating in a research report on Wednesday, August 5th. Citigroup lifted their target price on shares of Sunoco from $73.00 to $81.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Finally, Wall Street Zen cut Sunoco from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, Sunoco has an average rating of "Buy" and a consensus target price of $79.75.

Sunoco Company Profile

Sunoco LP NYSE: SUN is a master limited partnership focused primarily on the distribution and wholesale marketing of motor fuels. The company supplies gasoline, diesel and other refined products to independent fuel retailers, commercial customers, distributors and other end users, including customers operating under the Sunoco brand.

Sunoco's operations include fuel terminals, pipelines, transportation assets and other logistics infrastructure used to receive, store, blend and deliver petroleum products.

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