Par Pacific Q2 revenue, adjusted net income ease past estimates - PARR News | RalliesPar Pacific Q2 revenue, adjusted net income ease past estimates
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PARR• Outlook and result drivers
- The company expects to benefit from a favorable margin environment after completing annual turnaround maintenance.
- Par Pacific said it anticipates a reversal of working-capital outflows as commodity prices normalize and Hawaii inventory returns to typical levels.
- Higher adjusted gross margins, especially in Hawaii, drove results as market indices improved and price-lag effects were favorable.
- CEO said the results reflected strong operational and commercial execution, with turnaround maintenance substantially complete.
Analyst coverage and valuation
- The current average analyst rating on the shares is "buy," with 6 "strong buy" or "buy," 1 "hold," and no "sell" or "strong sell."
- The average consensus recommendation for the oil & gas refining and marketing peer group is "buy."
- Wall Street's median 12-month price target for Par Pacific Holdings Inc is $80.00, about 3.5% below its August 3 closing price of $82.87.
- The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago.
Quarterly results beat estimates
- U.S. energy refiner Par Pacific reported second-quarter revenue that beat analyst expectations.
- Adjusted EPS and adjusted net income for the quarter also beat analyst expectations.
- The company completed a $500 million senior notes offering, reducing term debt by more than $130 million.
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Revenue | Beat | $2.97 bln | $2.39 bln (6 Analysts) |
| Q2 Adjusted EPS | Beat | $10.10 | $8.01 (7 Analysts) |
| Q2 EPS | | $9.35 | |
| Q2 Adjusted Net Income | Beat | $499.20 mln | $387.05 mln (5 Analysts) |
| Q2 Net Income | | $462.94 mln | |
| Q2 Adjusted EBITDA | Beat | $571.26 mln | $482.86 mln (7 Analysts) |
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