Benzinga | Jan 28, 2021 10:09AM EST

Earnings Outlook for Phillips 66 Partners

Phillips 66 Partners (NYSE:PSXP) unveils its next round of earnings this Friday, January 29. Get prepared with Benzinga's ultimate preview for Phillips 66 Partners's Q4 earnings.

Net Income, Earnings, 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

Wall Street analysts see Phillips 66 Partners reporting earnings of $0.87 per share on revenue of $394.79 million. In the same quarter last year, Phillips 66 Partners reported earnings per share of $1.06 on revenue of $432.00 million.

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

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, earnings would be down 17.92%. Sales would be down 8.61% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.84 0.74 0.93 0.96EPS Actual 0.85 1.05 0.93 1.06Revenue Estimate 385.43 M 365.82 M 411.79 M 418.15 MRevenue Actual 394.00 M 430.00 M 404.00 M 432.00 M

Stock Performance

Shares of Phillips 66 Partners were trading at $27.62 as of January 27. Over the last 52-week period, shares are down 53.12%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Phillips 66 Partners is scheduled to hold the call at 14:00:00 ET and can be accessed here.