Benzinga | Jan 28, 2021 10:04AM EST

Phillips 66's Earnings Outlook

Phillips 66 (NYSE:PSX) announces its next round of earnings this Friday, January 29. Here is Benzinga's everything-that-matters guide for this Friday's Q4 earnings announcement.

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

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering Phillips 66 have modeled for quarterly EPS loss of $1.05 on revenue of $16.11 billion. Phillips 66 EPS in the same period a year ago totaled $1.54. Revenue was $29.61 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, EPS would have fallen 168.18%. Sales would be down 45.6% on a year-over-year basis. Phillips 66's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.79 -0.92 0.61 1.67EPS Actual -0.01 -0.74 1.02 1.54Revenue Estimate 17.16 B 15.37 B 19.63 B 27.93 BRevenue Actual 16.30 B 11.18 B 21.24 B 29.61 B

Stock Performance

Over the past 52-week period, shares of Phillips 66 have declined 20.59%.

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.