Sunoco (NYSE:SUN) Releases Quarterly Earnings Results, Misses Estimates By $0.39 EPS

Sunoco (NYSE:SUN) released its earnings results on Tuesday. The oil and gas company reported $2.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.46 by ($0.39), RTT News reports. The company had revenue of $18.03 billion during the quarter, compared to analyst estimates of $11.76 billion. Sunoco had a net margin of 2.88% and a return on equity of 18.78%. During the same period in the prior year, the firm posted $0.64 EPS.

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 Stock Performance

SUN stock traded down $2.43 during mid-day trading on Thursday, hitting $62.24. 381,991 shares of the company were exchanged, compared to its average volume of 492,149. Sunoco has a 1-year low of $49.98 and a 1-year high of $80.22. The stock has a market capitalization of $12.75 billion, a PE ratio of 13.79 and a beta of 0.42. The business has a 50 day simple moving average of $74.32 and a 200-day simple moving average of $68.58. The company has a current ratio of 1.29, a quick ratio of 0.83 and a debt-to-equity ratio of 1.95.

Sunoco Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Friday, November 6th will be issued a $1.0148 dividend. The ex-dividend date of this dividend is Friday, November 6th. This represents a $4.06 annualized dividend and a yield of 6.5%. This is an increase from Sunoco’s previous quarterly dividend of $1.0023. Sunoco’s payout ratio is currently 89.60%.

Analysts Set New Price Targets

Several research firms have weighed in on SUN. Mizuho set a $83.00 price target on Sunoco in a research report on Friday, July 24th. Wells Fargo & Company increased their price objective on Sunoco from $82.00 to $85.00 and gave the company an “overweight” rating in a report on Wednesday. Barclays reissued an “overweight” rating and issued a $83.00 target price on shares of Sunoco in a research note on Thursday, October 15th. JPMorgan Chase & Co. assumed coverage on shares of Sunoco in a report on Tuesday, October 20th. They set an “overweight” rating and a $87.00 target price on the stock. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Sunoco in a research report on Tuesday, August 18th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus target price of $80.12.

Sunoco Company Profile

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.