Sunoco (NYSE:SUN) Announces Quarterly Earnings Results

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

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 Down 4.9%

Shares of SUN traded down $3.40 during trading hours on Wednesday, hitting $65.60. The stock had a trading volume of 132,937 shares, compared to its average volume of 489,079. Sunoco has a 1-year low of $49.98 and a 1-year high of $80.22. The firm has a market capitalization of $13.44 billion, a P/E ratio of 14.52 and a beta of 0.42. The firm has a 50 day simple moving average of $74.52 and a 200-day simple moving average of $68.54. The company has a debt-to-equity ratio of 1.95, a current ratio of 1.29 and a quick ratio of 0.83.

Sunoco Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Friday, November 6th will be paid a $1.0148 dividend. The ex-dividend date is Friday, November 6th. This represents a $4.06 annualized dividend and a dividend yield of 6.2%. This is a boost from Sunoco’s previous quarterly dividend of $1.0023. Sunoco’s dividend payout ratio (DPR) is 89.60%.

Analyst Ratings Changes

Several equities analysts have recently commented on SUN shares. Citigroup boosted their target price on shares of Sunoco from $73.00 to $81.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Wall Street Zen lowered shares of Sunoco from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings reissued a “buy (b)” rating on shares of Sunoco in a research note on Tuesday, August 18th. Wells Fargo & Company boosted their price target on shares of Sunoco from $82.00 to $85.00 and gave the stock an “overweight” rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. initiated coverage on shares of Sunoco in a research note on Tuesday, October 20th. They issued an “overweight” rating and a $87.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $80.12.

Sunoco News Roundup

Here are the key news stories impacting Sunoco this week:

• Positive Sentiment: Third-quarter net income rose to $499 million from $137 million a year earlier, and adjusted EBITDA increased to $1.049 billion from $489 million. Revenue was $18.03 billion, above the cited analyst estimate of $11.76 billion. Sunoco third-quarter results
• Positive Sentiment: Management’s earnings call pointed to another potentially record year in 2027. Sunoco said it expects $500 million a year in bolt-on acquisitions to be a “modest bar,” suggesting room for further expansion. Acquisition plans and 2027 outlook
• Positive Sentiment: The partnership raised its distribution by 1.2% to $1.0148 per unit, a modest income boost for investors. Distribution increase
• Negative Sentiment: Reported EPS of $2.07 missed the $2.46 analyst consensus by $0.39. Despite strong year-over-year growth, the shortfall could weigh on sentiment. Quarterly earnings report

About Sunoco

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.