Sunoco (NYSE:SUN) Announces Quarterly Earnings Results

Sunoco (NYSE:SUN) issued its quarterly earnings data on Tuesday. The oil and gas company reported $2.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.46 by ($0.39), RTT News reports. The company had revenue of $18.03 billion for the quarter, compared to analyst estimates of $11.76 billion. Sunoco had a return on equity of 18.78% and a net margin of 2.88%. During the same quarter last year, the business earned $0.64 earnings per share.

Here are the key takeaways from Sunoco’s conference call:

• Record third-quarter performance: Adjusted EBITDA reached $1.06 billion and adjusted distributable cash flow was $588 million, while the distribution increased 1.25% sequentially and more than 10% year over year. Trailing 12-month distribution coverage remained strong at 2.1x.
• 2026 results are tracking above guidance: Management expects to surpass the high end of its full-year outlook and said 2027 should deliver another record year even if refining margins normalize to mid-cycle levels.
• Growth through acquisitions remains a major priority: Sunoco closed its $600 million Offen Petroleum acquisition, adding approximately 2.5 billion gallons of annual fuel distribution volume and strengthening its Midwest and Mountain West presence. Management expects its $500 million annual bolt-on acquisition target to remain a modest bar.
• Pipeline earnings declined sequentially: Pipeline adjusted EBITDA fell to $166 million from $190 million in the prior quarter, primarily because of lower joint-venture contributions and the absence of first-half FERC clawbacks. Canadian fuel demand also declined by low- to mid-single digits amid elevated prices, although margins remained strong.

Sunoco Price Performance

NYSE:SUN traded up $0.42 during trading hours on Tuesday, reaching $69.11. 90,976 shares of the company were exchanged, compared to its average volume of 489,188. The business has a 50 day moving average of $74.67 and a 200 day moving average of $68.49. Sunoco has a 1-year low of $49.98 and a 1-year high of $80.22. The company has a debt-to-equity ratio of 1.95, a current ratio of 1.29 and a quick ratio of 0.83. The company has a market capitalization of $14.16 billion, a P/E ratio of 15.26 and a beta of 0.42.

Sunoco Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Friday, November 6th will be given a dividend of $1.0148 per share. This is an increase from Sunoco’s previous quarterly dividend of $1.0023. This represents a $4.06 dividend on an annualized basis and a yield of 5.9%. The ex-dividend date of this dividend is Friday, November 6th. Sunoco’s dividend payout ratio (DPR) is currently 89.60%.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Wall Street Zen downgraded Sunoco from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Mizuho set a $83.00 price target on Sunoco in a report on Friday, July 24th. Wells Fargo & Company boosted their price target on Sunoco from $77.00 to $82.00 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Citigroup upped their price objective on Sunoco from $73.00 to $81.00 and gave the company a “buy” rating in a report on Friday, August 7th. Finally, JPMorgan Chase & Co. initiated coverage on Sunoco in a report on Tuesday, October 20th. They issued an “overweight” rating and a $87.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Sunoco has a consensus rating of “Buy” and an average target price of $79.75.

About Sunoco

Sunoco LP (NYSE:SUN) is a master limited partnership focused primarily on the distribution and wholesale marketing of motor fuels. The company supplies gasoline, diesel and other refined products to independent fuel retailers, commercial customers, distributors and other end users, including customers operating under the Sunoco brand.

Sunoco’s operations include fuel terminals, pipelines, transportation assets and other logistics infrastructure used to receive, store, blend and deliver petroleum products.