Global Partners LP GLP is set to release second-quarter results on Aug 4. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.28 per unit on revenues of $4.1 billion.
Let’s delve into the factors that might have influenced the vertically integrated energy partnership’s results in the June quarter. But it’s worth taking a look at GLP’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the Waltham, MA-based gasoline station and convenience store operator beat the consensus mark on strength in its Gasoline Distribution and Station Operations (“GDSO”) segment. GLP had reported net income per unit of 70 cents, beating the Zacks Consensus Estimate of 65 cents. However, revenues of $4 billion generated by the firm came in 9.4% below the Zacks Consensus Estimate due to lower wholesale unit volumes.
Global Partners beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 61.6%, on average. This is depicted in the graph below:
Global Partners LP Price and EPS Surprise
Global Partners LP price-eps-surprise | Global Partners LP Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line remained unchanged in the past seven days. The estimated figure indicates a 45.5% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 23.3% decrease from the year-ago period.
Factors to Consider
GLP is expected to have benefited from favorable market conditions in its Wholesale segment. In the first quarter of 2022, the partnership’s wholesale product margin of $53.1 million improved from $47.1 million a year ago. The uptick is most likely to have continued in the third quarter on the back of robust gasoline prices.
Global Partners is also expected to have reaped the reward of higher volumes across its GDSO unit. During the previous three-month period, GLP reported volumes of 379.2 million gallons, up from 376.5 million gallons a year ago. The momentum is likely to have continued in the to-be-reported quarter, with contributions from recent acquisitions.
On a somewhat bearish note, a higher expense structure might have dampened some of the positive impacts. Global Partners’ operating costs in the first quarter increased some 9.2% year over year to $108.4 million. The upward cost trajectory is likely to have continued in the April-June period primarily due to higher salary and rent outgo.
What Does Our Model Say?
The proven Zacks model does not conclusively show that GLP is likely to beat estimates in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Global Partners has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.28 per share each.
Zacks Rank: GLP currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for Global Partners, here are some firms that you may want to consider on the basis of our model:
AECOM ACM has an Earnings ESP of +1.05% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 7.
AECOM beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 4.8%, on average. Valued at around $12.2 billion, AECOM has gained 22.1% in a year.
American Equity Investment Life Holding Company AEL has an Earnings ESP of +0.8% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 7.
For 2023, AEL has a projected earnings growth rate of 76.6%. Valued at around $4.2 billion, American Equity Investment Life Holding Company has gained 43.9% in a year.
ALLETE Inc. ALE has an Earnings ESP of +2.56% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug 8.
For 2023, ALLETE has a projected earnings growth rate of 7.4%. Valued at around $3.3 billion, ALE has lost 7.6% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>AECOM (ACM) : Free Stock Analysis Report
American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
Allete, Inc. (ALE) : Free Stock Analysis Report
Global Partners LP (GLP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
