Sunoco (NYSE:SUN) Shares Cross Below 200-Day Moving Average After Earnings Miss

Key Points

• Sunoco shares fell below their 200-day moving average, trading at $64.67, after quarterly EPS of $2.07 missed the $2.46 analyst consensus. Revenue of $18.03 billion exceeded estimates of $11.76 billion.
• The partnership raised its quarterly distribution 1.2% to $1.0148 per unit, equivalent to an annualized $4.06 and a 6.3% yield.
• Despite the EPS miss, third-quarter net income rose to $499 million from $137 million a year earlier, and adjusted EBITDA more than doubled to $1.049 billion.

Sunoco LP (NYSE:SUN - Get Free Report) passed below its 200-day moving average during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $68.58 and traded as low as $64.67. Sunoco shares last traded at $64.67, with a volume of 882,718 shares.

The oil and gas company reported $2.07 earnings per share for the quarter, missing the consensus estimate of $2.46 by ($0.39). Sunoco had a return on equity of 18.78% and a net margin of 2.88%. The business had revenue of $18.03 billion during the quarter, compared to the consensus estimate of $11.76 billion. During the same quarter in the previous year, the company earned $0.64 earnings per share.

Sunoco Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Friday, November 6th will be paid a $1.0148 dividend. This represents a $4.06 dividend on an annualized basis and a yield of 6.3%. This is a boost from Sunoco's previous quarterly dividend of $1.0023. The ex-dividend date of this dividend is Friday, November 6th. Sunoco's payout ratio is currently 89.60%.

More Sunoco News

Here are the key news stories impacting Sunoco this week:

• Positive Sentiment: Third-quarter net income rose to $499 million from $137 million a year earlier, while adjusted EBITDA more than doubled to $1.049 billion from $489 million. Revenue was $18.03 billion. Sunoco reports record third-quarter earnings as net income triples
• Positive Sentiment: Sunoco increased its quarterly distribution by 1.2% to $1.0148 per unit, offering investors a higher payout. Sunoco LP raises dividend
• Positive Sentiment: Management indicated that $500 million a year in bolt-on acquisitions would be a “modest” target and signaled 2027 could bring another record year, pointing to continued growth ambitions. Sunoco expects $500M a year of bolt-on acquisitions
• Negative Sentiment: Reported EPS of $2.07 missed the $2.46 analyst consensus. The earnings miss could weigh on sentiment, even though revenue of $18.03 billion exceeded the $11.76 billion estimate. Sunoco Q3 Net Income Per Common Unit, Revenue Rise

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Sunoco in a research report on Tuesday, August 18th. Mizuho set a $83.00 price target on Sunoco in a research report on Friday, July 24th. Wells Fargo & Company upped their price objective on Sunoco from $82.00 to $85.00 and gave the stock an "overweight" rating in a research note on Wednesday. Citigroup raised their price objective on Sunoco from $73.00 to $81.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Finally, Wall Street Zen lowered Sunoco from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $80.12.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bryn Mawr Trust Advisors LLC acquired a new stake in Sunoco in the 3rd quarter worth approximately $203,000. Arrow Investment Advisors LLC increased its stake in Sunoco by 15.9% during the 3rd quarter. Arrow Investment Advisors LLC now owns 3,660 shares of the oil and gas company's stock valued at $267,000 after purchasing an additional 501 shares in the last quarter. Kestra Advisory Services LLC increased its stake in Sunoco by 8.6% during the 3rd quarter. Kestra Advisory Services LLC now owns 53,305 shares of the oil and gas company's stock valued at $3,884,000 after purchasing an additional 4,239 shares in the last quarter. Vise Technologies Inc. acquired a new position in Sunoco during the 3rd quarter valued at approximately $238,000. Finally, Americana Partners LLC purchased a new position in shares of Sunoco in the third quarter worth $207,000. 24.29% of the stock is currently owned by hedge funds and other institutional investors.

Sunoco Trading Down 6.3%

The stock's fifty day simple moving average is $74.32 and its 200-day simple moving average is $68.58. The firm has a market cap of $13.25 billion, a PE ratio of 14.31 and a beta of 0.42. The company has a debt-to-equity ratio of 1.95, a current ratio of 1.29 and a quick ratio of 0.83.

About Sunoco

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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