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Earnings Previews: Marathon Petroleum (MPC),...
By: 24/7 Wall St. | August 2, 2021

Marathon Petroleum

The country’s largest oil refiner, Marathon Petroleum Corp. (NYSE: MPC), has seen its share price rise by nearly 50% over the past 12 months. For the year to date, the stock has added about 34%. Rising oil prices are generally a drag on refining margins and earnings, and that trend has not escaped the notice of analysts who see Marathon’s revenues flattening or even declining for the rest of the year.

Even so, of 16 brokerages covering Marathon, 12 rate the shares a Buy or Strong Buy, and the rest recommend holding the stock. At a trading price of around $54.40, the stock’s upside potential based on a median price target of $70 is about 29%. At the high target of $83, upside potential is nearly 53%.

Quarterly revenue is forecast at $21.24 billion, down more than 7% sequentially, but up by about 46% year over year. In the same quarter last year, Marathon posted an adjusted loss per share of $1.33. For the second quarter of 2021, analysts are looking for EPS of $0.38. For the full year, the consensus estimates call for EPS of $0.88, compared to a 2020 loss per share of $3.44. Revenue is forecast to rise by 26.5% to $87.32 billion.

Marathon’s stock trades at 60.8 times expected 2021 EPS, 16.6 times estimated 2022 earnings and 12.7 times estimated 2023 earnings. The stock’s 52-week range is $26.56 to $64.84. Marathon pays an annual dividend of $2.32 (yield of 4.2%)...

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