Delek US Holdings (DK) Up 5% Since Last Earnings Report: Can It Continue?

Zacks2024-12-07

It has been about a month since the last earnings report for Delek US Holdings (DK). Shares have added about 5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue ...

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Shares have added about 5% in that time frame, outperforming the S&P 500.\nWill the recent positive trend continue ...</p>\n\n<a href=\"https://finance.yahoo.com/news/delek-us-holdings-dk-5-163115250.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Delek US Holdings (DK) Up 5% Since Last Earnings Report: Can It Continue?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDelek US Holdings (DK) Up 5% Since Last Earnings Report: Can It Continue?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-07 00:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/delek-us-holdings-dk-5-163115250.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It has been about a month since the last earnings report for Delek US Holdings (DK). Shares have added about 5% in that time frame, outperforming the S&P 500.\nWill the recent positive trend continue ...</p>\n\n<a href=\"https://finance.yahoo.com/news/delek-us-holdings-dk-5-163115250.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DKL","symbol_name":"Delek Logistics Partners","start_time":0,"source_url":"https://finance.yahoo.com/news/delek-us-holdings-dk-5-163115250.html","article_id":"2489601251","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/aMCT_Lh5K9xNn9.QUdX03w--~B/aD01ODc7dz05MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/17a4db66bb13bdabcbf848550a6ea15a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489601251","pubTimestamp":1733502675,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"It has been about a month since the last earnings report for Delek US Holdings . Shares have added about 5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Delek US Holdings due for a pullback?Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.Delek Q3 Loss Narrower Than Expected, Revenues Lag Estimates","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"DKL":"Delek Logistics Partners","EQNR":"Equinor ASA","DK":"Delek US Holdings"},"translate_title":"Delek US Holdings(DK)自上次收益报告以来上涨5%：还能继续吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DK":1,"DKL":0.9,"EQNR":0.9},"content_text":"It has been about a month since the last earnings report for Delek US Holdings (DK). Shares have added about 5% in that time frame, outperforming the S&P 500.\nWill the recent positive trend continue leading up to its next earnings release, or is Delek US Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. \nDelek Q3 Loss Narrower Than Expected, Revenues Lag Estimates\nDelek US Holdings reported a third-quarter 2024 adjusted net loss of $1.45 per share, narrower than the Zacks Consensus Estimate of a loss of $1.71, owing to lower year-over-year operating costs. The figure also deteriorated from the year-ago quarter’s profit of $2.02 per share. The loss was due to the Refining segment's weak year-on-year contributions.Net revenues decreased 35.9% year over year to $3 billion. The figure also missed the Zacks Consensus Estimate by $48 million.The diversified downstream energy company’s adjusted EBITDA was $70.6 million compared with $345.1 million in the year-ago period. DK’s board of directors approved the regular quarterly dividend of 25.5 cents per share. The dividend will be paid on Nov. 18, 2024, to its shareholders of record as of Nov 12.\nIn this quarter, the company introduced the Enterprise Optimization Plan, designed to increase overall profitability by at least $100 million.  \nSegmental Performances\nRefining:  The segment's adjusted EBITDA was $10.2 million, indicating a decline from the prior-year quarter's profit of $296.1 million. This significant’s year-over-year decline was due to lower refining crack spreads. In the third quarter of 2024, DK's benchmark crack spreads fell by an average of 49.1% from prior-year levels. Additionally, the reported figure missed our estimate of $76.9 million.Logistics: This unit represents Delek’s majority interest in Delek Logistics Partners, L.P.—a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.\nIn the third quarter, the segment registered an adjusted EBITDA of $106.1 million compared with $96.5 million in the year-ago quarter. The figure also beat our estimate of $100.1 million. This year-over-year growth is driven by robust contributions from the Delaware Gathering systems, annual rate increases and the impact of the Wink to Webster (W2W) pipeline dropdown.\nFinancials\nTotal operating expenses in the third quarter decreased about 29.6% year over year to $3.1 billion. Delek spent $128.5 million on capital programs in the same time frame.As of Sept. 30, 2024, the company had cash and cash equivalents worth $1 billion and long-term debt of $2.8 billion, with debt to total capital ratio of about 76.1%.\nKey Transactions: Acquisition, Divestiture and Investment\nH2O Midstream Acquisition: On Sept. 11, 2024, Delek Logistics completed the 100% acquisition of the membership interests in H2O Midstream Intermediate, LLC, H2O Midstream Permian LLC and H2O Midstream LLC (collectively, the “H2O Midstream Entities”) from H2O Midstream Holdings, LLC.\nThis transaction, valued at $229.5 million, includes water disposal and recycling operations in the Midland Basin of Texas and is subject to final working capital adjustments. The deal also incorporates $70 million in preferred units. In connection with the acquisition, Delek Logistics incurred $6.1 million in transaction-related costs ($4.7 million after-tax) for the three months ended Sept. 30, 2024.\nRetail Divestiture: On Sept. 30, 2024, Delek US finalized the sale of its retail operations, transferring 100% of the equity interests in four wholly owned subsidiaries that operate 249 retail fuel and convenience stores under the Delek US Retail brand. The buyer is a subsidiary of Fomento Económico Mexicano, S.A.B. de C.V.\nThe sale generated approximately $390.2 million in net cash proceeds before taxes. Delek US recognized a pre-tax gain of $98.4 million from the transaction. In accordance with ASC 205-20 and ASC 360, the results of the retail operations have been classified as discontinued operations, with the associated assets and liabilities also reclassified accordingly.\nWink to Webster Pipeline: On Aug. 1, 2024, the company increased its indirect investment in Wink to Webster Pipeline LLC by 0.6%, acquiring the additional stake for $18.6 million. This raised the total indirect ownership in the pipeline joint venture to 15.6%.\nSubsequently, on Aug. 5, 2024, the company contributed its entire 50% interest in W2W Holdings LLC (“HoldCo”), which includes the 15.6% indirect stake in Wink to Webster Pipeline LLC and the related joint venture debt, to a subsidiary of Delek Logistics. The total consideration for this transaction amounted to $83.9 million, including post-close adjustments, as well as the forgiveness of a $60 million payable to Delek Logistics and the issuance of 2,300,000 Delek Logistics common units.\nThe transaction was described as an asset acquisition between entities under common control, and therefore, no gain or loss was recognized. As of Aug. 5, 2024, the operating results of HoldCo are now reported within the company's Logistics segment, a change from its previous classification under corporate, other and eliminations.\nQ4 and 2024 Guidance\nFor 2024, the integrated downstream energy company expects capital expenditures of $330 million as it plans to spend $220 million on Refining, $70 million on Logistics (Delek Logistics Partners), $15 million on Discontinued Operations (Retail) and $25 million on Corporate & Other.\nFor the fourth quarter, the company anticipates operating costs in the band of $177-$188 million, general and administrative expenses in the range of $53-$58 million and depreciation and amortization costs between $95 million and $105 million. It also expects net interest expenses in the $75-$80 million range.\nThe company anticipates a total crude throughput of 255,000-269,000 barrels per day and a total throughput of 265,000-276,000 barrels per day in the same time frame.\nDK expects to process 67,000-69,000 barrels of crude oil per day (bpd) at its Tyler, TX, refinery in the fourth quarter. The El Dorado, AR, refinery is expected to process 77,000-80,000 bpd. The Big Spring, TX, refinery is expected to process 71,000 bpd to 74,000 bpd and the Krotz Springs, LA, refinery is expected to process 50,000 bpd to 53,000 barrels per day (bpd).\nHow Have Estimates Been Moving Since Then?\nIn the past month, investors have witnessed a downward trend in fresh estimates.\nThe consensus estimate has shifted -5.19% due to these changes.\nVGM Scores\nCurrently, Delek US Holdings has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.\nOverall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.\nOutlook\nEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Delek US Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.\nPerformance of an Industry Player\nDelek US Holdings belongs to the Zacks Oil and Gas - Refining and Marketing industry. Another stock from the same industry, Equinor (EQNR), has gained 5.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.\nEquinor reported revenues of $25.45 billion in the last reported quarter, representing a year-over-year change of -2.2%. EPS of $0.79 for the same period compares with $0.92 a year ago.\nFor the current quarter, Equinor is expected to post earnings of $0.82 per share, indicating a change of +28.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.8% over the last 30 days.\nThe overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Equinor. Also, the stock has a VGM Score of A.\nWant 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\nDelek US Holdings, Inc. (DK) : Free Stock Analysis Report\nEquinor ASA (EQNR) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489601251"}