Valero Energy to Report Q2 Earnings: What's in the Cards?

Valero Energy Corporation VLO is set to report second-quarter 2025 results on July 24, before the opening bell. In the last reported quarter, Valero Energy’s adjusted earnings of 89 cents per share beat the Zacks Consensus Estimate of 43 cents due to lower total cost of sales. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 122.87%. This is depicted in the graph below: Valero Energy Corporation Price and EPS Surprise Valero Energy Corporation price-eps-surprise | Valero Energy Corporation QuoteEstimate TrendThe Zacks Consensus Estimate for second-quarter earnings per share of $1.76 has witnessed no downward revision and one upward revision in the past seven days. The estimated figure suggests a decline of 35.06% from the prior-year reported number.The Zacks Consensus Estimate for revenues of $27.84 billion indicates a 19.29% decline from the year-ago recorded figure.Factors to ConsiderValero Energy is expected to have maintained a stable performance in the second quarter, owing to high refinery utilization rates during this period. Per the data from the U.S. Energy Information Administration, spot prices for West Texas Intermediate Crude dropped nearly 21% from the prior-year quarter’s level. This might have supported the refining player’s profitability by reducing input costs.Additionally, refining margins improved meaningfully during the quarter, driven by reduced global capacity from shutdowns at major refineries and strong seasonal demand, which boosted crack spreads, particularly benefiting Valero’s low-cost operations. The company’s strategic decision to close its high-cost Benicia refinery also aligns with broader industry consolidation, potentially enhancing future margins. Additionally, Valero has made notable progress in renewable diesel and SAF (sustainable aviation fuel) initiatives, which could have aided the company’s performance in the to-be-reported quarter.These factors are expected to have positively impacted demand and pricing dynamics, potentially aiding Valero Energy’s quarterly performance.Earnings WhispersOur proven model indicates an earnings beat for VLO 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: Valero Energy has an Earnings ESP of +1.22%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Zacks Rank: VLO currently carries a Zacks Rank #3.Other Stocks to ConsiderHere are some other firms from the energy space 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.Phillips 66 PSX has an Earnings ESP of +4.25% and a Zacks Rank #3 at present.Phillips 66 is scheduled to release second-quarter earnings on July 25. The Zacks Consensus Estimate for PSX’s earnings is pegged at $1.63 per share, which indicates a 29.4% year-over-year decline.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want 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