Valero Energy (NYSE:VLO) Announces Earnings Results

Key Points

• Valero Energy reported a quarterly earnings per share (EPS) of $2.28, significantly exceeding analysts' expectations of $1.66, although revenue of $29.89 billion was down 13.3% year-over-year.
• The company announced a quarterly dividend of $1.13 per share, leading to an annualized dividend yield of 3.18%, despite a high payout ratio of 159.72%.
• Valero Energy received positive analyst ratings with Goldman Sachs upgrading the stock from "neutral" to "buy," and the average target price set at $153.87.

Valero Energy (NYSE:VLO - Get Free Report) posted its quarterly earnings results on Thursday. The oil and gas company reported $2.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.66 by $0.62, Zacks reports. Valero Energy had a net margin of 0.62% and a return on equity of 5.74%. The company had revenue of $29.89 billion during the quarter, compared to analyst estimates of $27 billion. During the same period last year, the firm posted $2.71 EPS. Valero Energy's revenue for the quarter was down 13.3% compared to the same quarter last year.

Valero Energy Trading Up 1.2%

Shares of NYSE:VLO traded up $1.69 during mid-day trading on Friday, reaching $142.03. 2,786,874 shares of the company were exchanged, compared to its average volume of 3,458,177. Valero Energy has a 1 year low of $99.00 and a 1 year high of $167.78. The firm's 50-day simple moving average is $137.66 and its 200 day simple moving average is $130.81. The firm has a market cap of $44.48 billion, a price-to-earnings ratio of 59.18, a P/E/G ratio of 2.88 and a beta of 1.00. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.56 and a quick ratio of 1.09.

Valero Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Investors of record on Thursday, July 31st will be given a dividend of $1.13 per share. The ex-dividend date of this dividend is Thursday, July 31st. This represents a $4.52 dividend on an annualized basis and a dividend yield of 3.18%. Valero Energy's payout ratio is currently 159.72%.

Analyst Ratings Changes

Several research analysts recently issued reports on VLO shares. The Goldman Sachs Group raised shares of Valero Energy from a "neutral" rating to a "buy" rating and raised their target price for the stock from $127.00 to $154.00 in a report on Tuesday, May 13th. JPMorgan Chase & Co. reduced their price objective on Valero Energy from $152.00 to $147.00 and set an "overweight" rating for the company in a research note on Monday, April 28th. Evercore ISI began coverage on Valero Energy in a research note on Wednesday, June 18th. They set an "in-line" rating and a $135.00 price objective for the company. Piper Sandler reduced their price target on Valero Energy from $160.00 to $159.00 and set an "overweight" rating for the company in a research report on Tuesday. Finally, Mizuho lifted their price target on Valero Energy from $158.00 to $166.00 and gave the company an "outperform" rating in a research report on Tuesday, May 13th. Five investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, Valero Energy presently has an average rating of "Moderate Buy" and an average target price of $153.87.

Hedge Funds Weigh In On Valero Energy

A hedge fund recently raised its stake in Valero Energy stock. Woodline Partners LP raised its position in Valero Energy Corporation (NYSE:VLO - Free Report) by 40.7% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 26,747 shares of the oil and gas company's stock after acquiring an additional 7,735 shares during the quarter. Woodline Partners LP's holdings in Valero Energy were worth $3,532,000 as of its most recent SEC filing. 78.69% of the stock is owned by institutional investors and hedge funds.

Valero Energy Company Profile

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol.

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