HF Sinclair (NYSE:DINO – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $11.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.83 by $3.92, FiscalAI reports. The business had revenue of $10.86 billion for the quarter, compared to the consensus estimate of $8.89 billion. During the same period in the previous year, the company earned $2.44 earnings per share. The company’s revenue for the quarter was up 49.7% compared to the same quarter last year.
Here are the key takeaways from HF Sinclair’s conference call:
- Exceptional third-quarter results: Adjusted net income rose to $2.1 billion, or $11.75 per diluted share, versus $459 million a year earlier, while adjusted EBITDA increased to $3.0 billion. Refining benefited from elevated crack spreads, tight fuel supplies and EPA small-refinery RIN waivers, while renewables and Lubricants & Specialties also improved materially.
- Management expects refining-market tightness to persist, citing roughly 4 million barrels per day of offline capacity in the Middle East and Russia, low inventories and limited Chinese exports. HF Sinclair also expects wider WCS differentials to benefit its heavy-crude processing, including through the El Dorado project’s added capacity of up to 10,000 barrels per day.
- The company returned $572 million to shareholders during the quarter through dividends and buybacks, reaffirmed its goal of a 50% payout ratio, and declared a quarterly dividend of $0.525 per share. Liquidity was approximately $5.3 billion, with a 19% debt-to-capital ratio and net debt-to-capital ratio of negative 4%.
- HF Sinclair plans to reach a final investment decision on the first phase of Westline Connect in the first quarter of 2027, targeting an additional 35,000 barrels per day of product transportation capacity by 2029. Management expects to fund the project and Western Gateway commitments with cash on hand and operating cash flow, primarily emphasizing organic growth.
- The Lubricants and Specialties spin-off remains on track for the second half of 2027, while the Mississauga refinery shutdown is progressing; the segment incurred $55 million of related impairment, severance and accelerated depreciation charges in the quarter. Steve Ledbetter will become CEO on January 1, 2027, with Franklin Myers remaining as executive chair during the transition.
HF Sinclair Trading Down 1.4%
DINO stock traded down $1.57 during trading on Wednesday, reaching $112.64. The stock had a trading volume of 1,222,938 shares, compared to its average volume of 2,650,263. HF Sinclair has a 52 week low of $45.71 and a 52 week high of $129.37. The stock’s 50 day moving average is $110.78 and its two-hundred day moving average is $77.26. The firm has a market cap of $20.02 billion, a PE ratio of 10.74 and a beta of 0.72.
HF Sinclair News Summary
Here are the key news stories impacting HF Sinclair this week:
- Positive Sentiment: HF Sinclair reported record third-quarter net income of $2.02 billion, or $11.38 per diluted share, compared with $403 million, or $2.15 per share, a year earlier. Adjusted EPS of $11.75 substantially exceeded analyst expectations of $7.83-$8.17, while revenue increased 49.7% year over year to $10.86 billion. HF Sinclair Reports 2026 Third Quarter Results and Announces Regular Cash Dividend
- Positive Sentiment: Refining margins nearly tripled and topped expectations, highlighting strong operating conditions and driving the company’s record profitability. HF Sinclair Q3 2026: Refining Margins Nearly Triple, Topping Expectations
- Positive Sentiment: The company declared its regular quarterly dividend, payable December 2, reinforcing its shareholder-return program. Piper also initiated coverage with an Overweight rating, citing HF Sinclair’s quality refining assets and commitment to returning capital. HF Sinclair Corporation Declares Regular Quarterly Dividend
- Neutral Sentiment: President and Chief Operating Officer Steve Ledbetter will become president and CEO on January 1, 2027, succeeding Franklin Myers. Ledbetter’s existing operational experience may support continuity, although investors will assess the transition and future strategy. HF Sinclair Appoints Steve Ledbetter as Chief Executive Officer and President
- Negative Sentiment: Some relative-value commentary favored PBF Energy over HF Sinclair, citing stronger expected earnings growth, improving margins, cost savings and a lower valuation. This could limit enthusiasm for DINO despite its strong quarter. PBF vs. DINO: Which Downstream Energy Stock Is the Better Buy?
Insider Transactions at HF Sinclair
In other HF Sinclair news, SVP Dale Kunneman sold 8,936 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $84.58, for a total transaction of $755,806.88. Following the completion of the sale, the senior vice president directly owned 42,561 shares in the company, valued at $3,599,809.38. The trade was a 17.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.26% of the company’s stock.
Wall Street Analyst Weigh In
Several equities research analysts recently commented on DINO shares. Piper Sandler began coverage on HF Sinclair in a report on Tuesday. They issued an “overweight” rating and a $152.00 price objective for the company. The Goldman Sachs Group upped their target price on shares of HF Sinclair from $114.00 to $142.00 and gave the company a “buy” rating in a research note on Friday, October 9th. Zacks Research raised shares of HF Sinclair from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th. Evercore assumed coverage on shares of HF Sinclair in a research note on Friday, July 17th. They issued an “in-line” rating and a $85.00 price target for the company. Finally, TD Cowen boosted their price objective on shares of HF Sinclair from $100.00 to $110.00 and gave the company a “hold” rating in a report on Thursday, October 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $116.58.
Read Our Latest Stock Analysis on HF Sinclair
About HF Sinclair
HF Sinclair Corporation (NYSE:DINO) is an independent energy company engaged in refining, marketing and distributing petroleum products. The company operates refineries that process crude oil into gasoline, diesel, jet fuel, asphalt, lubricants and other specialty products. Its portfolio also includes renewable fuels activities and the production and marketing of base oils and other petroleum-based products.
HF Sinclair markets fuel under the Sinclair brand and supplies products to commercial customers, independent retailers and other wholesale and retail channels.
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