DK Earnings Prediction
The chart below shows how DK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DK sees a +3.01% change in stock price 10 days leading up to the earnings, and a +2.72% change 10 days following the report. On the earnings day itself, the stock moves by -1.97%. This data can give you a slight idea of what to expect for the next quarter's release.
DK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.04B
-34.27%
-11.09%
Gross Margin
-0.84%
-114.02%
-166.67%
Operating Margin
-3.70%
-179.40%
-477.55%
Net Margin
-4.43%
-263.47%
482.89%
EPS
-1.20
-160.91%
106.90%
No Data Available
DK Earnings Analysis
Delek US Holdings, Inc. Corporation (DK.N) Earnings Conference Call
Positive
Resilient Adjusted EBITDA: 1. Strong Adjusted EBITDA: Delek US reported an adjusted EBITDA of approximately $71 million for Q3 2024, demonstrating resilience in a challenging refining margin environment.
Asset Sale Success: 2. Successful Asset Sales: The company successfully closed the sale of its retail asset to FEMSA on September 30, contributing to a stronger balance sheet amid low refining margins.
Cash Flow Enhancement: 3. Significant Cash Flow Generation: Delek generated $215 million in cash primarily due to the retail sale, enhancing its liquidity position.
Shareholder Value Commitment: 4. Shareholder Returns: During the quarter, Delek paid $16 million in dividends and repurchased $20 million of its shares, reflecting a commitment to returning value to shareholders.
Cost Savings Strategy: 5. Cost Reduction Initiatives: The company is implementing a new cost reduction plan expected to achieve at least $100 million in annual savings and margin improvements by the second half of 2025.
Negative
Net Loss Reported: 1. Significant Net Loss: Delek reported a net loss of $77 million or negative $1.20 per share for the quarter, indicating a substantial decline in profitability.
Declining Adjusted EBITDA: 2. Declining Adjusted EBITDA: The adjusted EBITDA decreased by $32 million compared to the previous quarter, primarily due to a lower-margin environment in refining operations.
Production Margin Challenges: 3. Low Production Margins: The production margin at the El Dorado refinery was only $0.66 per barrel, significantly impacted by outages, highlighting operational challenges.
Rising Operating Expenses: 4. Increased Operating Expenses: Operating expenses in El Dorado reached $5.01 per barrel, which included an unfavorable impact of approximately $0.35 per barrel due to outages, indicating rising costs amid operational difficulties.
Cash Flow Challenges: 5. Negative Cash Flow from Operations: The company experienced a cash outflow of $22 million from operations, reflecting financial strain despite efforts to improve cash generation.
DK FAQs
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DK Earning Call Sentiment
Delek US Holdings, Inc. (DK) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DK.N
2.12%Positive
The earnings call highlights several negative factors: decreased adjusted EBITDA, a net loss, increased long-term debt, and operational challenges at the El Dorado refinery. Despite some positive aspects like a dividend increase and share buybacks, the low-margin environment and increased debt raise concerns. The Q&A section reveals management's lack of clarity on key financial metrics and guidance, further contributing to uncertainty. Given the company's small market cap, these issues are likely to lead to a negative stock price reaction over the next two weeks.
