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Valero Energy Posts $489 Million Q3 Loss (VLO)

By Dividend.com Staff
October 27th, 2009

valero-energy-posts-489-million-q3-loss-vlo

Oil refiner Valero Energy Corporation (VLO) on Tuesday said that it lost $489 million in the third quarter, as oil production and demand waned amid the economic recession.

The San Antonio-based company reported a third quarter net loss of $489 million, or 87 cents per share, compared with a profit of $1.2 billion, or $2.18 per share, in the year-ago period. Excluding items, its adjusted loss was 39 cents per share.

On average, Wall Street analysts expected a smaller loss of 33 cents per share.

Revenue plunged 46% from last year, to $19.5 billion. To combat worsening economic conditions, the company said it will continue to cut jobs and shutter additional refineries.

Valero shares fell 34 cents, or -1.7%, in morning trading Tuesday.

The Bottom Line
We had removed shares of VLO from our “recommended” list back on Sept.9, when they traded at $34.60. The company has a 2.96% dividend yield, based on last night’s closing stock price of $20.27. The stock has technical support in the $14-$16 price area. If the shares can bounce back from today’s tough news, we see overhead resistance around the $23-$25 price levels. We would remain on the sidelines for now.

Valero Energy Corporation (VLO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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Disclaimer: Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. The author is not registered as an investment adviser. The author may or may not hold positions in the securities mentioned in this article or video. The author relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.