Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

HollyFrontier Corp (HFC) Earnings: An Early Look

Page 1 of 2

Earnings season is now starting to wind down, with most companies already having reported their quarterly results. But there are still some companies left to report, and HollyFrontier Corp (NYSE:HFC) is about to release its quarterly earnings. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

HollyFrontier Corp (NYSE:HFC)Refining companies have enjoyed unparalleled success lately, with a glut of local crude oil combined with high global prices for refined products leading to huge crack spreads for HollyFrontier. How long can the good times last? Let’s take an early look at what’s been happening with HollyFrontier over the past quarter and what we’re likely to see in its quarterly report next Tuesday.

Stats on HollyFrontier

Analyst EPS Estimate $2.26
Change From Year-Ago EPS 113%
Revenue Estimate $4.93 billion
Change From Year-Ago Revenue (0.9%)
Earnings Beats in Past 4 Quarters 2

Source: Yahoo! Finance.

Will HollyFrontier keep refining its profits this quarter?
Analysts have got really excited about HollyFrontier’s earnings prospects over the past few months. They’ve raised consensus earnings-per-share for the just-ended quarter by $0.33 and lifted full-year 2013 EPS by $1.35. The stock has also reflected that enthusiasm, rising 25% just since mid-November.

Refining stocks have done so well lately because they have access to cheap sources of oil on U.S. soil. In particular, HollyFrontier, Valero Energy Corporation (NYSE:VLO), and Tesoro Corporation (NYSE:TSO) have taken advantage of their geographical proximity to productive oil plays to cash in on low-priced domestic crude, earning $20 per barrel in cost savings versus having to import crude at higher Brent prices. Although margins across the industry are high, HollyFrontier crushes its competitors, nearly doubling margin per barrel at Phillips 66 (NYSE:PSX) despite the latter’s 25% gains since becoming an independent company.

Some fear that pipeline expansion projects could allow cheap crude oil to become available for export, raising crude prices and cutting HollyFrontier’s profitable margins. Seaway Pipeline operators Enterprise Products Partners L.P. (NYSE:EPD) and Enbridge Energy Partners, L.P. (NYSE:EEP) certainly hope so, as they build a large pipeline to connect the Cushing hub to the Gulf Coast that should be finished in early 2014. Yet if production keeps rising at the pace it has, then even expanded pipelines won’t be enough to curb the glut.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!