Phillips 66 (NYSE:PSX) Earnings Preview: Key Financial Insights

• Phillips 66 is expected to report an EPS of $1.63 and revenue of approximately $32.3 billion for the second quarter.
• The company's financial performance is anticipated to improve, driven by strong diesel margins.
• Despite the positive outlook, the projected EPS and revenue represent a year-over-year decline of 29.4% and 21.5%, respectively.

Phillips 66, trading as NYSE:PSX, is a major player in the energy sector, primarily involved in refining, marketing, and transportation of petroleum products. As the company prepares to release its quarterly earnings on July 25, 2025, Wall Street anticipates an earnings per share (EPS) of $1.63 and revenue of approximately $32.3 billion.

Investors are particularly interested in PSX's performance, as the company is expected to report increased profits for the second quarter. This anticipated recovery follows losses in the first quarter, driven by unexpectedly strong diesel margins. These margins have significantly bolstered the financial performance of leading U.S. refiners, including Phillips 66.

Despite the expected EPS of $1.63, this figure represents a notable year-over-year decline of 29.4%. Additionally, the projected revenue marks a decrease of 21.5% compared to the same quarter last year. Over the past 30 days, analysts have slightly revised the EPS estimate upward by 0.8%, reflecting a reassessment of initial forecasts.

Phillips 66's financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 28.19, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 0.38, suggesting a relatively low valuation compared to its sales.

The enterprise value to sales ratio is around 0.50, reflecting the company's total valuation in relation to its revenue. With an enterprise value to operating cash flow ratio of approximately 15.04, PSX shows how its valuation compares to its cash flow from operations. The earnings yield is about 3.55%, providing insight into the return on investment for shareholders.