Benzinga | Oct 29, 2020 10:10AM EDT

Phillips 66 Earnings Preview

On Friday, October 30, Phillips 66 (NYSE: PSX) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Phillips 66 have modeled for quarterly EPS loss of $0.79 on revenue of $17.16 billion. In the same quarter last year, Phillips 66 reported EPS of $3.11 on revenue of $27.77 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 125.4% decline in the company's earnings. Sales would have fallen 38.21% from the same quarter last year. Phillips 66's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.92 0.61 1.67 2.59EPS Actual -0.74 1.02 1.54 3.11Revenue Estimate 15.37 B 19.63 B 27.93 B 27.79 BRevenue Actual 11.18 B 21.24 B 29.61 B 27.77 B

Stock Performance

Over the past 52-week period, shares of Phillips 66 have declined 62.93%.

Do not be surprised to see the stock move on comments made during its conference call. Phillips 66 is scheduled to hold the call at 12:00:00 ET and can be accessed here.