Marathon Petroleum Powers Ahead With Q4 Beat Despite Revenue, Profit Plunge: Details
Portfolio Pulse from Lekha Gupta
Marathon Petroleum Corp (MPC) reported Q4 FY23 results with revenue of $36.82 billion, surpassing the $35.25 billion consensus. Adjusted EBITDA was $3.53 billion, down from $5.80 billion in the prior year. Adjusted EPS was $3.98, above the $2.20 consensus. MPC returned $2.5 billion to shareholders through buybacks and dividends and has $5.9 billion left for repurchases. MPLX LP (MPLX), partly owned by MPC, beat earnings and sales estimates. MPC expects Q1 refining costs of $5.85 per barrel and throughputs of 2,685 mbpd. MPC shares rose 0.49% to $160.91.
January 30, 2024 | 2:36 pm
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POSITIVE IMPACT
Marathon Petroleum beat Q4 revenue and EPS estimates, with a significant share repurchase and dividend payments, despite a decline in adjusted EBITDA and lower market crack spreads.
The positive earnings report and continued shareholder returns through buybacks and dividends are likely to have a favorable impact on MPC's stock price in the short term. The decline in adjusted EBITDA is a concern but seems to be outweighed by the positive earnings surprise and shareholder-friendly actions.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
MPLX LP, affiliated with Marathon Petroleum, reported strong Q4 earnings per unit and sales, exceeding consensus estimates, and increased capital returns to unitholders.
MPLX's strong quarterly performance and increased capital returns to unitholders are likely to positively influence its stock price in the short term. The connection to MPC and the beat on both earnings and sales consensus add to the positive outlook.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80