Sunoco (NYSE:SUN) Posts Quarterly Earnings Results, Misses Estimates By $1.56 EPS

Sunoco (NYSE:SUN) issued its quarterly earnings data on Tuesday. The oil and gas company reported $0.94 EPS for the quarter, missing the consensus estimate of $2.50 by ($1.56), FiscalAI reports. Sunoco had a return on equity of 17.52% and a net margin of 3.07%.The company had revenue of $14.26 billion during the quarter, compared to analyst estimates of $11.05 billion. During the same quarter in the prior year, the company posted $0.33 earnings per share. The business’s revenue was up 164.5% compared to the same quarter last year.

Here are the key takeaways from Sunoco’s conference call:

• Sunoco raised its 2026 Adjusted EBITDA guidance to $3.5 billion–$3.7 billion, $400 million above its original range, supported by strong first-half execution and contributions from recent acquisitions.
• Second-quarter Adjusted EBITDA reached $996 million, while Distributable Cash Flow was $608 million; the partnership raised its quarterly distribution by 1.25% sequentially and more than 10% year over year, with 2.1x trailing coverage.
• All four segments performed well, including a strong rebound in refining EBITDA to $175 million and continued growth in fuel distribution, pipeline, and terminal volumes. Management expects fuel distribution and midstream performance to remain strong in the second half.
• Management said its $500 million annual bolt-on acquisition target is a “modest bar” and expects to exceed it in 2026, while also pursuing quick-payback organic projects across its expanded North American, Caribbean, South American, and European footprint.
• Refining results remain sensitive to volatile crack spreads, which are the main reason for the EBITDA guidance range; management also expects second-half cash tax expense to be below first-half levels but acknowledged taxes have increased with stronger earnings.

Sunoco Stock Down 4.8%

NYSE:SUN traded down $3.74 during midday trading on Tuesday, reaching $73.67. The company had a trading volume of 335,245 shares, compared to its average volume of 483,887. The firm has a market capitalization of $15.09 billion, a price-to-earnings ratio of 18.82 and a beta of 0.41. The stock’s fifty day simple moving average is $68.78 and its 200-day simple moving average is $65.51. Sunoco has a 12-month low of $47.98 and a 12-month high of $78.11. The company has a current ratio of 1.40, a quick ratio of 0.92 and a debt-to-equity ratio of 2.03.

Sunoco Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Friday, August 7th will be paid a $1.0023 dividend. The ex-dividend date is Friday, August 7th. This is an increase from Sunoco’s previous quarterly dividend of $0.99. This represents a $4.01 annualized dividend and a dividend yield of 5.4%. Sunoco’s payout ratio is 101.28%.

Analyst Upgrades and Downgrades

A number of research firms have commented on SUN. Raymond James Financial restated a “strong-buy” rating and set a $80.00 price target on shares of Sunoco in a research note on Wednesday, May 6th. Citigroup raised their target price on Sunoco from $65.00 to $73.00 and gave the company a “buy” rating in a report on Friday, May 8th. Royal Bank Of Canada lifted their target price on Sunoco to $78.00 and gave the company an “outperform” rating in a research report on Wednesday, May 13th. Wall Street Zen upgraded shares of Sunoco from a “hold” rating to a “buy” rating in a research note on Sunday, July 12th. Finally, Mizuho set a $83.00 price target on shares of Sunoco in a research report on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of $77.12.

Hedge Funds Weigh In On Sunoco

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Ancora Advisors LLC purchased a new stake in shares of Sunoco during the third quarter worth approximately $40,000. Russell Investments Group Ltd. lifted its stake in Sunoco by 110.3% in the fourth quarter. Russell Investments Group Ltd. now owns 1,569 shares of the oil and gas company’s stock worth $82,000 after acquiring an additional 823 shares during the last quarter. Northwestern Mutual Wealth Management Co. acquired a new position in Sunoco during the 4th quarter worth approximately $95,000. State of Wyoming purchased a new stake in shares of Sunoco in the 2nd quarter valued at approximately $111,000. Finally, Advisory Services Network LLC purchased a new stake in shares of Sunoco in the 3rd quarter valued at approximately $134,000. Hedge funds and other institutional investors own 24.29% of the company’s stock.

About Sunoco

Sunoco LP (NYSE: SUN) is an independent master limited partnership that specializes in the distribution and marketing of transportation fuels and related products. The company operates through two primary segments: wholesale fuel distribution and retail marketing. In wholesale distribution, Sunoco supplies branded fuels to distributors, commercial customers and resellers across the United States. Its retail marketing arm operates a network of company?owned and franchised Sunoco branded service stations and convenience stores, providing gasoline, diesel, ethanol blends and lubricants to consumers.

Sunoco’s product portfolio extends beyond traditional fuels to include biofuels, specialty chemicals and on?road diesel treated to meet ultra?low sulfur requirements.