Exploring Marathon Petroleum's Earnings Expectations

Marathon Petroleum MPC is preparing to release its quarterly earnings on Tuesday, 2025-05-06. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Marathon Petroleum to report an earnings per share (EPS) of $-0.54.

The market awaits Marathon Petroleum's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.75, leading to a 0.25% increase in the share price the following trading session.

Here's a look at Marathon Petroleum's past performance and the resulting price change:

Stock Performance

Shares of Marathon Petroleum were trading at $141.55 as of May 02. Over the last 52-week period, shares are down 21.31%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Observations about Marathon Petroleum

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Marathon Petroleum.

Marathon Petroleum has received a total of 9 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $165.67, the consensus suggests a potential 17.04% upside.

Comparing Ratings with Competitors

The analysis below examines the analyst ratings and average 1-year price targets of Phillips 66, Valero Energy and Sunoco, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Phillips 66, with an average 1-year price target of $132.0, suggesting a potential 6.75% downside.
• Analysts currently favor an Outperform trajectory for Valero Energy, with an average 1-year price target of $143.43, suggesting a potential 1.33% upside.
• Analysts currently favor an Outperform trajectory for Sunoco, with an average 1-year price target of $64.25, suggesting a potential 54.61% downside.

Insights: Peer Analysis

The peer analysis summary outlines pivotal metrics for Phillips 66, Valero Energy and Sunoco, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Marathon Petroleum ranks first in revenue growth among its peers. It also leads in gross profit margin. However, it ranks second in return on equity.

About Marathon Petroleum

Marathon Petroleum is an independent refiner with 13 refineries in the midcontinent, West Coast, and Gulf Coast of the United States with total throughput capacity of 3.0 million barrels per day. Its Dickinson, North Dakota, facility produces 184 million gallons a year of renewable diesel. Its Martinez, California, facility has the ability to produce 730 million gallons a year of renewable diesel. The firm also owns and operates midstream assets primarily through its listed master limited partnership, MPLX.

Marathon Petroleum: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Decline in Revenue: Over the 3 months period, Marathon Petroleum faced challenges, resulting in a decline of approximately -8.6% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Marathon Petroleum's net margin excels beyond industry benchmarks, reaching 1.12%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.02%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Marathon Petroleum's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.47%, the company showcases efficient use of assets and strong financial health.

Debt Management: Marathon Petroleum's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.62.

To track all earnings releases for Marathon Petroleum visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.