Delek US Reports Earnings Results, Falling Short of Estimates

Delek US (NYSE:DK) reported its quarterly earnings on Tuesday, revealing a significant miss in its earnings per share (EPS). The company reported an EPS of ($2.54), which is $1.01 lower than the consensus estimate of ($1.53), according to Zacks.

Performance Overview

In addition to the disappointing earnings results, Delek US also reported a negative return on equity of 28.21% and a negative net margin of 2.27%. These figures suggest that the company is facing challenges in its profitability and efficiency metrics.

Stock Performance

Following the earnings release, shares of Delek US opened at $16.34 on Tuesday. The stock has experienced a twelve-month low of $15.36 and a high of $33.60. It currently has a market cap of $1.03 billion and a price-to-earnings (P/E) ratio of -3.36. The stock's beta stands at 1.20, indicating some volatility in its trading. The 50-day moving average for the stock is $18.22, while the 200-day moving average is $18.65. Additionally, the company has a current ratio of 1.04, a quick ratio of 0.67, and a high debt-to-equity ratio of 3.18.

Dividend Announcement

Delek US recently declared a quarterly dividend of $0.255 per share, which will be paid on March 10th to stockholders on record as of March 3rd. This dividend reflects an annualized payout of $1.02, resulting in a dividend yield of 6.24%. However, the company's payout ratio is reported at -20.99%, indicating it is not currently distributing profits.

Market Analysts’ Perspectives

Several analysts provided insights on Delek US's stock following the earnings report. JPMorgan Chase & Co. raised their price objective from $21.00 to $22.00, maintaining a "neutral" rating. On the other hand, Wells Fargo reduced their target from $18.00 to $16.00 and described the stock as "underweight". Other firms, such as Wolfe Research and Mizuho, have given mixed reviews, with the consensus rating remaining as "Hold" and an average target price of $21.00.

Company Background

Delek US Holdings, Inc. is involved in the integrated downstream energy sector in the United States, operating through its Refining, Logistics, and Retail segments. The Refining segment processes crude oil and other feedstock to produce various petroleum products, including gasoline and diesel fuel, which are distributed through both owned and third-party terminals.

Earnings, Stocks, DelekUS