Delek Surpasses Earnings Expectations, Stock Rallies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Earnings Beat: Delek reported first-quarter revenue of $2.65 billion, a 0.4% year-over-year increase, and despite an adjusted loss per share of $0.98, it exceeded Wall Street expectations, showcasing strong performance amid high jet fuel refining margins.
- Cost-Cutting Initiative: Management raised its annual cash flow savings target from $200 million to $220 million, indicating that while undergoing self-help measures, the company is enhancing operational efficiency through a significant cost-cutting program.
- Refining Capacity Advantage: Delek has a higher proportion of its refining capacity dedicated to jet fuel than its peers, and the current high margins have led to a substantial increase in adjusted EBITDA from a $27 million loss in the prior year to $155.3 million, reflecting robust profitability.
- Asset Valuation Assessment: Management believes that with a mid-cycle adjusted EBITDA of approximately $545 million, combined with other assets, Delek's enterprise value should be around $2.45 billion, significantly above its current trading level, suggesting potential for stock price doubling.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DK?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DK
Wall Street analysts forecast DK stock price to fall
9 Analyst Rating
2 Buy
7 Hold
0 Sell
Hold
Current: 46.670
Low
33.00
Averages
41.00
High
53.00
Current: 46.670
Low
33.00
Averages
41.00
High
53.00
About DK
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels. The Company's segments include Refining and Logistics. The Refining segment processes crude oil and other feedstocks for the manufacture of transportation motor fuels, including various grades of gasoline, diesel fuel and aviation fuel, asphalt and other petroleum-based products that are distributed through owned and third-party product terminals. The Refining segment also owns three biodiesel facilities, located in Crossett, Arkansas, Cleburne, Texas and New Albany, Mississippi. The Logistics segment is engaged in gathering, transporting and storing crude oil and natural gas, marketing, distributing, transporting and storing intermediate and refined products and disposing and recycling water in select regions of the southeastern United States and North Dakota, the Midland Basin in Texas, the Delaware Basin in New Mexico and West Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Delek US Holdings, Inc. Q1 2026 Earnings Call Insights
- Financial Performance Overview: Delek US Holdings reported a net loss of $201 million or $3.34 per share for Q1 2026, although adjusted net income was approximately $5 million or $0.08 per share, indicating some profitability amidst market volatility.
- Operational Efficiency Improvement: CEO Soreq noted that Big Spring successfully completed its planned turnaround, with the refinery now operating at full capacity, which is expected to enhance capital spending efficiency moving forward.
- Enterprise Optimization Plan Target Increase: The company raised its enterprise optimization plan target to at least $220 million annually, estimating approximately $60 million contribution to the P&L from EOP in Q1 2026, demonstrating ongoing efforts to enhance operational efficiency.
- Market Outlook and Guidance: CFO Hobbs provided Q2 throughput guidance by refinery, expecting total system throughput between 293,000 and 313,000 barrels per day, with operating expenses projected between $215 million and $225 million, reflecting a proactive operational strategy in an uncertain market environment.
See More
Delek U.S. Holdings Shares Surge 15.1% on Strong Earnings
- Earnings Beat: Delek's Q1 revenue rose 0.4% to $2.65 billion, with an adjusted loss per share of $0.98, exceeding market expectations and demonstrating resilience in a high oil price environment.
- Cost-Cutting Initiative: Management raised the annual cash flow savings target from $200 million to $220 million, indicating a strong commitment to enhancing operational efficiency and profitability through self-help measures.
- Refining Profit Surge: The refining segment's adjusted EBITDA soared to $155.3 million, a significant turnaround from a $27 million loss in the previous year, highlighting the company's advantageous position in jet fuel yield.
- Future Growth Potential: Delek's management estimates mid-cycle adjusted EBITDA at approximately $545 million, and with small refinery exemption payments potentially boosting adjusted EBITDA by $375 million to $750 million, the stock price could double from current levels.
See More
Delek Surpasses Earnings Expectations, Stock Rallies
- Earnings Beat: Delek reported first-quarter revenue of $2.65 billion, a 0.4% year-over-year increase, and despite an adjusted loss per share of $0.98, it exceeded Wall Street expectations, showcasing strong performance amid high jet fuel refining margins.
- Cost-Cutting Initiative: Management raised its annual cash flow savings target from $200 million to $220 million, indicating that while undergoing self-help measures, the company is enhancing operational efficiency through a significant cost-cutting program.
- Refining Capacity Advantage: Delek has a higher proportion of its refining capacity dedicated to jet fuel than its peers, and the current high margins have led to a substantial increase in adjusted EBITDA from a $27 million loss in the prior year to $155.3 million, reflecting robust profitability.
- Asset Valuation Assessment: Management believes that with a mid-cycle adjusted EBITDA of approximately $545 million, combined with other assets, Delek's enterprise value should be around $2.45 billion, significantly above its current trading level, suggesting potential for stock price doubling.
See More
Delek US Declares Quarterly Dividend of $0.255 per Share
- Quarterly Dividend Announcement: Delek US has declared a quarterly dividend of $0.255 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 2.49% reflects the company's attractiveness in the current market environment, potentially boosting shareholder confidence and encouraging long-term stock holding.
- Payment Schedule: The dividend is payable on May 8, with a record date of May 1 and an ex-dividend date also on May 1, providing shareholders with a clear timeline that aids in financial planning.
- Market Reaction Expectations: Given the current market conditions, Delek US's dividend announcement may positively impact its stock price, especially in light of the company's performance exceeding market expectations, further solidifying its position in the energy sector.
See More
Delek US Q1 Earnings Exceed Expectations
- Earnings Performance: Delek US reported a Q1 non-GAAP EPS of -$0.98, beating expectations by $0.64, indicating resilience despite a negative overall performance.
- Revenue Growth: The company achieved Q1 revenue of $2.65 billion, a 0.4% year-over-year increase, surpassing market expectations by $210 million, demonstrating its ability to maintain sales growth amid competition.
- Net Loss Situation: Despite an adjusted net income of $4.7 million or $0.08 per share, the company reported a net loss of $201.3 million, translating to a loss of $3.34 per share, reflecting cost pressures and market challenges.
- Adjusted EBITDA: The adjusted EBITDA stood at $211.7 million, with an adjusted EPS of -$0.98 after excluding RVO adjustment impacts, indicating improvements in operational efficiency but highlighting the need to focus on restoring profitability.
See More
Delek US Q1 Earnings Announcement and Analysis
- Earnings Release Date: Delek US (DK) is set to announce its Q1 2023 earnings on April 29 before market open, with consensus EPS estimates at -$1.62, reflecting a 30.2% year-over-year decline, and revenue estimates at $2.42 billion, down 8.3% year-over-year.
- Historical Performance: Over the past two years, Delek US has beaten EPS estimates 100% of the time and revenue estimates 63% of the time, demonstrating a consistent performance that bolsters market confidence in its future earnings potential.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and seven downward revisions, while revenue estimates saw two upward and three downward revisions, indicating a weakening market sentiment regarding the company's profitability outlook.
- Enterprise Optimization Goals: Delek US has raised its enterprise optimization plan target to a $200 million annual run rate, signaling the company's commitment to enhancing operational efficiency and financial performance as it accelerates economic separation from DKL, potentially laying the groundwork for future growth.
See More
Delek US Holdings, Inc. Q1 2026 Earnings Call Insights
- Financial Performance Overview: Delek US Holdings reported a net loss of $201 million or $3.34 per share for Q1 2026, although adjusted net income was approximately $5 million or $0.08 per share, indicating some profitability amidst market volatility.
- Operational Efficiency Improvement: CEO Soreq noted that Big Spring successfully completed its planned turnaround, with the refinery now operating at full capacity, which is expected to enhance capital spending efficiency moving forward.
- Enterprise Optimization Plan Target Increase: The company raised its enterprise optimization plan target to at least $220 million annually, estimating approximately $60 million contribution to the P&L from EOP in Q1 2026, demonstrating ongoing efforts to enhance operational efficiency.
- Market Outlook and Guidance: CFO Hobbs provided Q2 throughput guidance by refinery, expecting total system throughput between 293,000 and 313,000 barrels per day, with operating expenses projected between $215 million and $225 million, reflecting a proactive operational strategy in an uncertain market environment.
See More
Delek U.S. Holdings Shares Surge 15.1% on Strong Earnings
- Earnings Beat: Delek's Q1 revenue rose 0.4% to $2.65 billion, with an adjusted loss per share of $0.98, exceeding market expectations and demonstrating resilience in a high oil price environment.
- Cost-Cutting Initiative: Management raised the annual cash flow savings target from $200 million to $220 million, indicating a strong commitment to enhancing operational efficiency and profitability through self-help measures.
- Refining Profit Surge: The refining segment's adjusted EBITDA soared to $155.3 million, a significant turnaround from a $27 million loss in the previous year, highlighting the company's advantageous position in jet fuel yield.
- Future Growth Potential: Delek's management estimates mid-cycle adjusted EBITDA at approximately $545 million, and with small refinery exemption payments potentially boosting adjusted EBITDA by $375 million to $750 million, the stock price could double from current levels.
See More
Delek Surpasses Earnings Expectations, Stock Rallies
- Earnings Beat: Delek reported first-quarter revenue of $2.65 billion, a 0.4% year-over-year increase, and despite an adjusted loss per share of $0.98, it exceeded Wall Street expectations, showcasing strong performance amid high jet fuel refining margins.
- Cost-Cutting Initiative: Management raised its annual cash flow savings target from $200 million to $220 million, indicating that while undergoing self-help measures, the company is enhancing operational efficiency through a significant cost-cutting program.
- Refining Capacity Advantage: Delek has a higher proportion of its refining capacity dedicated to jet fuel than its peers, and the current high margins have led to a substantial increase in adjusted EBITDA from a $27 million loss in the prior year to $155.3 million, reflecting robust profitability.
- Asset Valuation Assessment: Management believes that with a mid-cycle adjusted EBITDA of approximately $545 million, combined with other assets, Delek's enterprise value should be around $2.45 billion, significantly above its current trading level, suggesting potential for stock price doubling.
See More
Delek US Declares Quarterly Dividend of $0.255 per Share
- Quarterly Dividend Announcement: Delek US has declared a quarterly dividend of $0.255 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 2.49% reflects the company's attractiveness in the current market environment, potentially boosting shareholder confidence and encouraging long-term stock holding.
- Payment Schedule: The dividend is payable on May 8, with a record date of May 1 and an ex-dividend date also on May 1, providing shareholders with a clear timeline that aids in financial planning.
- Market Reaction Expectations: Given the current market conditions, Delek US's dividend announcement may positively impact its stock price, especially in light of the company's performance exceeding market expectations, further solidifying its position in the energy sector.
See More
Delek US Q1 Earnings Exceed Expectations
- Earnings Performance: Delek US reported a Q1 non-GAAP EPS of -$0.98, beating expectations by $0.64, indicating resilience despite a negative overall performance.
- Revenue Growth: The company achieved Q1 revenue of $2.65 billion, a 0.4% year-over-year increase, surpassing market expectations by $210 million, demonstrating its ability to maintain sales growth amid competition.
- Net Loss Situation: Despite an adjusted net income of $4.7 million or $0.08 per share, the company reported a net loss of $201.3 million, translating to a loss of $3.34 per share, reflecting cost pressures and market challenges.
- Adjusted EBITDA: The adjusted EBITDA stood at $211.7 million, with an adjusted EPS of -$0.98 after excluding RVO adjustment impacts, indicating improvements in operational efficiency but highlighting the need to focus on restoring profitability.
See More
Delek US Q1 Earnings Announcement and Analysis
- Earnings Release Date: Delek US (DK) is set to announce its Q1 2023 earnings on April 29 before market open, with consensus EPS estimates at -$1.62, reflecting a 30.2% year-over-year decline, and revenue estimates at $2.42 billion, down 8.3% year-over-year.
- Historical Performance: Over the past two years, Delek US has beaten EPS estimates 100% of the time and revenue estimates 63% of the time, demonstrating a consistent performance that bolsters market confidence in its future earnings potential.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and seven downward revisions, while revenue estimates saw two upward and three downward revisions, indicating a weakening market sentiment regarding the company's profitability outlook.
- Enterprise Optimization Goals: Delek US has raised its enterprise optimization plan target to a $200 million annual run rate, signaling the company's commitment to enhancing operational efficiency and financial performance as it accelerates economic separation from DKL, potentially laying the groundwork for future growth.
See More
