-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
VLO easily surpassed Q1 expectations with adjusted EPS of $4.22 versus $0.89 in the prior year, beating consensus by $1.06 for the second consecutive quarterly blowout. The Refining segment drove performance, generating $1.8B in adjusted operating income versus $605M in the prior year, with margins widening to $14.90/b vs. $9.78, reflecting improved market fundamentals and solid 2.9M barrel per day throughput enabling strong fixed cost absorption. Both renewable segments showed marked improvement, with Renewable Diesel swinging to $139M operating income from a $141M loss and Ethanol contributing $90M versus $20M in the prior year. VLO remains on track for Q3 completion of its $230M FCC optimization project at St. Charles, which is expected to enhance refining margins via increased high-value product yields. We note California remains challenging, with the West Coast region posting an operating loss, but after the Benicia plant closure, California now represents less than 5% of VLO's refining capacity.