Phillips 66 to Report Q2 Earnings: What's in the Cards?

Phillips 66 PSX is set to report second-quarter 2025 earnings on July 25, before the opening bell.Let us delve into the factors that are likely to have affected this diversified energy player’s quarterly performance. However, before that, it would be worth reviewing PSX’s performance in the previous quarter.Highlights of Q1 Earnings & Surprise HistoryIn the last reported quarter, the company’s adjusted loss of 90 cents per share was wider than the Zacks Consensus Estimate of a loss of 77 cents due to lower refining volumes and a drop in realized refining margins worldwide.PSX’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average surprise of 10.56%. This is depicted in the graph below:Phillips 66 Price and EPS Surprise Phillips 66 price-eps-surprise | Phillips 66 QuoteEstimate TrendThe Zacks Consensus Estimate for second-quarter earnings per share of $1.63 has witnessed one upward and no downward movement over the past seven days. The estimated figure suggests a decline of 29.4% from the year-ago reported number.The Zacks Consensus Estimate for revenues of $30.54 billion indicates a 21.5% decrease from the year-ago reported figure.Factors to ConsiderPSX is likely to have maintained a stable performance as demand for gasoline in the United States remained resilient during the second quarter of 2025. While refining margins softened slightly during the quarter, PSX’s diversified operations — particularly its midstream, chemicals, and expanding renewable fuels businesses like the Rodeo Renewable Complex — are expected to have offset this pressure.The company also likely benefited from strategic investments, including the EPIC NGL acquisition, which enhances integration and earnings potential. PSX continues shuttering non-core assets — like its Los Angeles refinery — and redirecting capital to higher-margin, lower-emission projects, reinforcing long-term profitability.Data from the U.S. Energy Information Administration show that the average spot price for West Texas Intermediate crude at Cushing, OK, was $64.63 per barrel for the quarter ended June 2025, down from $81.77 in the comparable period of 2024. With crude prices down nearly 21%, PSX’s input costs for refining fell, potentially boosting crack spreads — provided gasoline and diesel prices did not decline as sharply.These factors are likely to have positively impacted PSX’s earnings in the to-be-reported quarter.Earnings WhispersOur proven model indicates an earnings beat for Phillips 66 this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is just the case here, as you will see below.Earnings ESP: PSX’s Earnings ESP is +4.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3.Other Stocks to ConsiderHere are some other stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.BP plc BP has an Earnings ESP of +2.91% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.BP is scheduled to release second-quarter 2025 earnings on Aug. 5. The Zacks Consensus Estimate for BP’s earnings is pegged at 66 cents per share, implying a 34% year-over-year decline.Matador Resources MTDR has an Earnings ESP of +10.22% and a Zacks Rank #3 at present.Matador Resources is set to release second-quarter 2025 earnings on July 22. The Zacks Consensus Estimate for MTDR’s earnings is pegged at $1.25 per share, indicating a 39% decline year over year.Valero Energy Corporation VLO currently has an Earnings ESP of +1.22% and a Zacks Rank #3.Valero Energy is scheduled to release second-quarter earnings on July 24. The Zacks Consensus Estimate for VLO’s earnings is pegged at $1.76 per share, suggesting a 35% decline from the prior-year reported figure.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Matador Resources Company (MTDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks