Why Valero's Shares Popped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of refiner Valero Energy jumped 12% today after the company issued a huge earnings beat.

So what: The company posted a fourth-quarter profit of $1.0 billion, or $1.82 per share. On an adjusted basis, which takes out one-time items, earnings per share were $1.88, way above the $1.18 analysts expected.  


Now what: Valero is benefiting from lower-cost crude oil from shale plays that don't yet have the infrastructure to maximize profits. Localized prices were lower, increasing margins for the company in the quarter. Nonetheless, this was a huge quarter, and there will continue to be price abnormalities like this in the future, so I think shares can continue to move higher on the strong results.

Interested in more info on Valero? Add it to your watchlist by clicking here.

The article Why Valero's Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDrawThe Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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