Sunoco (NYSE:SUN) Releases Earnings Results, Misses Estimates By $1.56 EPS

Key Points

• Sunoco missed quarterly earnings expectations, reporting $0.94 EPS versus the $2.50 consensus estimate, despite revenue of $14.26 billion—up 164.5% year over year and above estimates.
• Management raised 2026 adjusted EBITDA guidance to $3.5 billion–$3.7 billion, citing strong execution, acquisitions and performance across all four segments. Second-quarter adjusted EBITDA was $996 million, with $608 million in distributable cash flow.
• Sunoco increased its quarterly distribution to $1.0023 per share, representing a 5.4% annualized yield, while analysts maintained a generally bullish view with a consensus “Buy” rating and a $77.12 price target.

Sunoco (NYSE:SUN - Get Free Report) released its earnings results on Tuesday. The oil and gas company reported $0.94 earnings per share for the quarter, missing the consensus estimate of $2.50 by ($1.56), FiscalAI reports. Sunoco had a net margin of 3.07% and a return on equity of 17.52%. The company had revenue of $14.26 billion for the quarter, compared to the consensus estimate of $11.05 billion. During the same period in the prior year, the firm posted $0.33 EPS. The business's revenue for the quarter was up 164.5% compared to the same quarter last year.

Here are the key takeaways from Sunoco's conference call:

• Sunoco raised its 2026 Adjusted EBITDA guidance to $3.5 billion–$3.7 billion, $400 million above its original range, supported by strong first-half execution and contributions from recent acquisitions.
• Second-quarter Adjusted EBITDA reached $996 million, while Distributable Cash Flow was $608 million; the partnership raised its quarterly distribution by 1.25% sequentially and more than 10% year over year, with 2.1x trailing coverage.
• All four segments performed well, including a strong rebound in refining EBITDA to $175 million and continued growth in fuel distribution, pipeline, and terminal volumes. Management expects fuel distribution and midstream performance to remain strong in the second half.
• Management said its $500 million annual bolt-on acquisition target is a “modest bar” and expects to exceed it in 2026, while also pursuing quick-payback organic projects across its expanded North American, Caribbean, South American, and European footprint.
• Refining results remain sensitive to volatile crack spreads, which are the main reason for the EBITDA guidance range; management also expects second-half cash tax expense to be below first-half levels but acknowledged taxes have increased with stronger earnings.

Sunoco Trading Down 4.3%

Shares of NYSE SUN traded down $3.36 during mid-day trading on Tuesday, reaching $74.05. The company had a trading volume of 241,629 shares, compared to its average volume of 483,206. The business's 50-day moving average is $68.78 and its 200-day moving average is $65.51. The company has a current ratio of 1.40, a quick ratio of 0.92 and a debt-to-equity ratio of 2.03. The stock has a market cap of $15.17 billion, a price-to-earnings ratio of 18.98 and a beta of 0.41. Sunoco has a 52 week low of $47.98 and a 52 week high of $78.11.

Sunoco Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Friday, August 7th will be paid a dividend of $1.0023 per share. This is an increase from Sunoco's previous quarterly dividend of $0.99. This represents a $4.01 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date of this dividend is Friday, August 7th. Sunoco's payout ratio is presently 101.28%.

Hedge Funds Weigh In On Sunoco

A number of hedge funds have recently added to or reduced their stakes in SUN. Ancora Advisors LLC purchased a new stake in shares of Sunoco in the third quarter valued at approximately $40,000. Russell Investments Group Ltd. increased its holdings in Sunoco by 110.3% during the 4th quarter. Russell Investments Group Ltd. now owns 1,569 shares of the oil and gas company's stock worth $82,000 after purchasing an additional 823 shares during the period. Northwestern Mutual Wealth Management Co. bought a new stake in Sunoco during the 4th quarter valued at $95,000. State of Wyoming bought a new stake in Sunoco during the 2nd quarter valued at $111,000. Finally, Advisory Services Network LLC purchased a new stake in shares of Sunoco in the 3rd quarter worth $134,000. 24.29% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have commented on SUN shares. JPMorgan Chase & Co. lifted their price objective on shares of Sunoco from $73.00 to $84.00 and gave the stock an "overweight" rating in a research note on Friday, July 24th. Weiss Ratings raised shares of Sunoco from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, May 21st. Wall Street Zen upgraded shares of Sunoco from a "hold" rating to a "buy" rating in a report on Sunday, July 12th. Barclays lifted their price target on shares of Sunoco from $75.00 to $78.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 14th. Finally, Royal Bank Of Canada upped their price target on shares of Sunoco to $78.00 and gave the company an "outperform" rating in a report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $77.12.

About Sunoco

Sunoco LP NYSE: SUN is an independent master limited partnership that specializes in the distribution and marketing of transportation fuels and related products. The company operates through two primary segments: wholesale fuel distribution and retail marketing. In wholesale distribution, Sunoco supplies branded fuels to distributors, commercial customers and resellers across the United States. Its retail marketing arm operates a network of company‐owned and franchised Sunoco branded service stations and convenience stores, providing gasoline, diesel, ethanol blends and lubricants to consumers.

Sunoco's product portfolio extends beyond traditional fuels to include biofuels, specialty chemicals and on‐road diesel treated to meet ultra‐low sulfur requirements.

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