Delek US Reports Disappointing Earnings Results

Delek US (NYSE:DK) announced its quarterly earnings results on Tuesday, revealing a loss of ($2.54) earnings per share (EPS). This outcome fell short of analysts' expectations, which had anticipated a loss of ($1.53), a difference of ($1.01). The company's performance also highlighted a negative return on equity of 28.21% and a negative net margin of 2.27%, indicating underlying operational challenges.

Delek US Stock Performance

The stock of Delek US opened at $16.34 on the same day. Over the past year, the stock has recorded a low of $15.36 and a high of $33.60. Currently, Delek US has a market capitalization of approximately $1.03 billion. The stock's price-to-earnings ratio stands at -3.36, with a beta of 1.20, suggesting a higher level of volatility compared to the broader market. The 50-day moving average for the stock is $18.22, while the 200-day moving average is $18.65. In terms of liquidity, the company has a current ratio of 1.04 and a quick ratio of 0.67, along with a notably high debt-to-equity ratio of 3.18.

Dividend Announcement

In addition to the earnings report, Delek US also declared a quarterly dividend. This dividend, amounting to $0.255 per share, is set to be paid on March 10th, with stockholders on record as of March 3rd eligible for the payment. The ex-dividend date is also March 3rd. This results in an annualized dividend of $1.02, reflecting a dividend yield of 6.24%. However, it is worth noting that Delek US's payout ratio is at -20.99%, indicating that the company is distributing more than its net income.

Analyst Ratings and Commentary

Several analysts recently shared their views on Delek US stock. JPMorgan Chase & Co. increased their price target for Delek US from $21.00 to $22.00 while maintaining a "neutral" rating. Wolfe Research upgraded the stock from an "underperform" to a "peer perform" rating. Conversely, Wells Fargo reduced their price target from $18.00 to $16.00, assigning an "underweight" rating. Mizuho also lowered their target from $26.00 to $25.00 while retaining a "neutral" rating. Currently, five analysts rate the stock as a sell, while six have a hold rating, leading to a consensus rating of "Hold" with an average price target of $21.00.

About Delek US

Delek US Holdings, Inc. operates in the integrated downstream energy sector in the United States. The company functions through three main segments: Refining, Logistics, and Retail. The Refining segment encompasses the processing of crude oil and various feedstocks for producing different grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products, which are distributed through both owned and third-party terminals.

Earnings, Stock, Analysts