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

About this update from Fomento Economico Mexicano Sab De Cv Units Cons. Of 5 Shsb

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 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 EstimatesDelek 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.In this quarter, the company introduced the Enterprise Optimization Plan, designed to increase overall profitability by at least $100 million. Segmental PerformancesRefining: 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.In 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...

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