Valero's Q3 Revenue Falls, But Strong EPS And Sustainable Aviation Fuel Progress Shines
Portfolio Pulse from Akanksha Bakshi
Valero Energy Corp reported a Q3 FY23 revenue decline of 13.6% YoY to $38.404 billion, missing the consensus of $38.495 billion. However, EPS was $7.49, up from $7.14 a year ago, beating the consensus of $7.47. The company returned $2.2 billion to stockholders, with $1.8 billion used for the purchase of ~13 million shares of common stock. The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant remains on schedule and is expected to be completed in 2025.

October 26, 2023 | 7:21 pm
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NEUTRAL IMPACT
Valero's Q3 revenue fell short of expectations, but EPS beat consensus. The company returned significant capital to shareholders and continues to make progress on its SAF project.
Valero's revenue fell short of expectations, which could negatively impact the stock. However, the EPS beat and the return of capital to shareholders are positive signals. The ongoing progress on the SAF project could also be a long-term positive, but it's too early to tell. Therefore, the short-term impact is neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100