Sunoco (NYSE:SUN) Issues Earnings Results, Beats Estimates By $1.14 EPS

Sunoco (NYSE:SUN) posted its quarterly earnings results on Tuesday. The oil and gas company reported $2.85 EPS for the quarter, topping analysts’ consensus estimates of $1.71 by $1.14, FiscalAI reports. Sunoco had a return on equity of 19.29% and a net margin of 3.07%.The company had revenue of $10.69 billion for the quarter, compared to analysts’ expectations of $10.19 billion. During the same period in the previous year, the firm earned $1.21 EPS. The firm’s revenue was up 106.4% compared to the same quarter last year.

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

• Strong Q1 financials — Sunoco reported Adjusted EBITDA of $867 million (excl. ~$90M transaction expenses) and Adjusted Distributable Cash Flow of $535 million, and declared a 6.25% distribution increase to $0.9899 per common unit.
• One-time inventory benefit — the quarter included a ~$102 million gain on inventory sale (about $92M booked in fuel distribution) from post‑acquisition inventory optimization; management says the inventory level is sustainable and that guidance stands even without this one‑time gain.
• Acquisition-led growth and synergies — closed the TanQuid acquisition (now the largest independent terminal operator in Germany with 16 assets) and expects immediate DCF/unit accretion in 2026, while Parkland integration is delivering expense and commercial synergies targeting >10% accretion before year three and a >$250M run‑rate.
• Healthy balance sheet & capital flexibility — $2.2 billion revolver availability, leverage ~4x in line with targets, Q1 capex of $106M growth and $93M maintenance, and a trailing 12‑month coverage ratio of 1.9x to support continued M&A and distribution growth.

Sunoco Price Performance

Shares of SUN traded up $0.62 during mid-day trading on Thursday, hitting $67.53. 295,008 shares of the stock were exchanged, compared to its average volume of 477,677. The company has a market cap of $13.83 billion, a PE ratio of 17.29 and a beta of 0.46. Sunoco has a 52-week low of $47.98 and a 52-week high of $70.00. The firm has a 50-day moving average of $65.07 and a two-hundred day moving average of $58.66. The company has a debt-to-equity ratio of 2.06, a quick ratio of 0.78 and a current ratio of 1.38.

Sunoco Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 20th. Stockholders of record on Friday, May 8th will be issued a dividend of $0.9899 per share. This is a positive change from Sunoco’s previous quarterly dividend of $0.93. The ex-dividend date of this dividend is Friday, May 8th. This represents a $3.96 annualized dividend and a dividend yield of 5.9%. Sunoco’s payout ratio is currently 101.28%.

Analyst Upgrades and Downgrades

SUN has been the topic of a number of research analyst reports. Wall Street Zen cut Sunoco from a “buy” rating to a “hold” rating in a report on Saturday, February 14th. Weiss Ratings cut Sunoco from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, April 22nd. Wells Fargo & Company boosted their price target on Sunoco from $71.00 to $77.00 and gave the stock an “overweight” rating in a report on Thursday. Raymond James Financial reissued a “strong-buy” rating and issued a $80.00 price target on shares of Sunoco in a report on Wednesday. Finally, Barclays set a $63.00 price target on Sunoco in a report on Friday, February 20th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $72.57.

Institutional Trading of Sunoco

Several hedge funds have recently modified their holdings of the company. Energy Income Partners LLC raised its holdings in shares of Sunoco by 1.7% during the 3rd quarter. Energy Income Partners LLC now owns 1,916,858 shares of the oil and gas company’s stock worth $95,862,000 after acquiring an additional 32,866 shares in the last quarter. Morgan Stanley raised its holdings in shares of Sunoco by 60.5% during the 4th quarter. Morgan Stanley now owns 1,639,420 shares of the oil and gas company’s stock worth $85,922,000 after acquiring an additional 617,700 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Sunoco by 266.6% during the 4th quarter. JPMorgan Chase & Co. now owns 1,626,278 shares of the oil and gas company’s stock worth $85,233,000 after acquiring an additional 1,182,662 shares in the last quarter. Raymond James Financial Inc. raised its holdings in shares of Sunoco by 4.4% during the 3rd quarter. Raymond James Financial Inc. now owns 382,059 shares of the oil and gas company’s stock worth $19,107,000 after acquiring an additional 16,106 shares in the last quarter. Finally, Wells Fargo & Company MN raised its holdings in shares of Sunoco by 25.4% during the 4th quarter. Wells Fargo & Company MN now owns 201,360 shares of the oil and gas company’s stock worth $10,553,000 after acquiring an additional 40,806 shares in the last quarter. 24.29% of the stock is owned by hedge funds and other institutional investors.

About Sunoco

Sunoco LP (NYSE: SUN) is an independent master limited partnership that specializes in the distribution and marketing of transportation fuels and related products. The company operates through two primary segments: wholesale fuel distribution and retail marketing. In wholesale distribution, Sunoco supplies branded fuels to distributors, commercial customers and resellers across the United States. Its retail marketing arm operates a network of company‐owned and franchised Sunoco branded service stations and convenience stores, providing gasoline, diesel, ethanol blends and lubricants to consumers.

Sunoco’s product portfolio extends beyond traditional fuels to include biofuels, specialty chemicals and on‐road diesel treated to meet ultra‐low sulfur requirements.