Earlier today, Sunoco Logistics Partners L.P. (SXL) -- a master limited partnership (MLP) -- announced weaker-than-expected third quarter results, hurt by a 50% fall in sales on the back of lower crude oil prices. The partnership reported earnings per unit (EPU) of $1.13, well below the Zacks Consensus Estimate of $1.44. In the year-ago period, Sunoco Logistics earned $1.41 per unit. Distribution Raised However, the partnership raised its quarterly distribution by 2.4% sequentially and 10.4% year-over-year to $1.065 per unit or $4.26 per unit annualized, representing the 25th distribution increase in the past 26 quarters. Distributable cash flow increased approximately 4% year-over-year to $54.4 million. Refined Products Pipeline System Operating income in the Refined Products Pipeline System segment increased more than 40% year-over-year to $13.3 million, primarily resulting from a $6.3 million increase in sales and other revenue. The revenue gains reflected contributions from ...

Plains All American Pipeline L.P. (PAA) yesterday announced the acquisition of certain pipelines, a manifold system and approximately 400,000 barrels of crude oil storage capacity from Holly Corporation (HOC) for $40 million. The deal includes 6 tanks, 9 receiving pipelines and related assets and contract rights located at or associated with Holly’s Tulsa, Oklahoma refinery.  Apart from the sale, the companies entered into a tank lease and throughput agreement, allowing Holly to use the acquired tankage for a monthly payment and pipelines for a fee. Holly will maintain ownership of the remaining 2.8 million barrels of intermediate and finished petroleum product tankage that was acquired as part of Holly's Tulsa refinery acquisition from Sunoco in June 2009.  Plains and Holly have also agreed to work together to identify and capture contango storage opportunities.  Plains All American Pipeline L.P. is a publicly traded master limited ...

For Immediate Release

Chicago, IL – August 24, 2009 – Zacks Equity Research highlights Yum! Brands (YUM) as the Bull of the Day and Sunoco (SUN) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Sherwin Williams (SHW), La-Z-Boy (LZB) and Mohawk (MHK).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

The operator of Taco Bell, Pizza Hut, and KFC fast food chains, Yum! Brands (YUM), reported second quarter results, with double-digit growth in the bottom-line. Earnings per share grew 11% to 50 cents, surpassing the Zacks Consensus Estimate of 43 cents

Driving growth is the company's overseas divisions (China and Yum Restaurants International), which constitute the only stable segment of the entire restaurant industry. Both the divisions are on track to grow

...

Our Underperform recommendation on Sunoco (SUN) shares takes into account the bearish refining margin outlook. A growing supply overhang in the face of a recession-induced fall in global oil product demand has led to a squeeze in refiners profits.

Sunoco's lack of geographic diversification and refining flexibility has also become a major liability, in our view. Weighed down by these factors, the company posted a second-quarter 2009 loss.

Overall, we see a fairly unfavorable macro backdrop for independent refiners like Sunoco. We believe this will cause Sunoco shares to underperform relative to the market as well as the sector in the coming quarters.Zacks Investment Research

For Immediate Release

Chicago, IL – August 13, 2009 – Zacks Equity Research highlights Cisco Systems (CSCO) as the Bull of the Day and Sunoco (SUN) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Nissan (NSANY), Ford Motor (F) and Daimler AG (DAI).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

Cisco Systems’ (CSCO) fourth quarter results were a significant improvement over prior quarters, with both revenue and earnings growing sequentially.

Of particular note is the growth in orders, which indicates a bottom for CSCO. Improving operating performance, solid financials, a sound restructuring policy and new growth initiatives are the drivers behind our Outperform rating.

However, we caution investors about the increasing competition, market share losses, complicated decision making process and integration

...

Our Underperform recommendation on Sunoco (SUN) shares takes into account the bearish refining margin outlook. A growing supply overhang in the face of a recession-induced fall in global oil product demand has led to a squeeze in refiners profits.

Sunoco's lack of geographic diversification and refining flexibility has also become a major liability, in our view. Weighed down by these factors, the company posted a second-quarter 2009 loss.

Overall, we see a fairly unfavorable macro backdrop for independent refiners like Sunoco. We believe this will cause its shares to underperform relative to the market as well as the sector in the coming quarters.Zacks Investment Research

Recently, Sunoco Inc. (SUN) reported weaker-than-expected second-quarter results, as rising crude oil prices and weak demand for gasoline and diesel pulled down its refining margins. Loss per share, excluding special items, came in at 27 cents, significantly below the Zacks Consensus Estimate of a penny per share in profits.  

In the year-ago period, the Pennsylvania-based marketer of petroleum products earned 52 cents per share. Revenue was down 51% year-over-year to $7.5 billion.

Refining & Supply   The Refining & Supply segment lost $77 million during the quarter, as against a profit of $27 million in the year-earlier period, mainly on account of lower realized margins and lower production volumes. Realized margin averaged $3.65 per barrel, down 48% from the second quarter of 2008, reflecting a very weak East Coast refining margin environment. Total production was down approximately 6% year-over-year to ...

Sunoco Logistics Partners, L.P. (SXL) announced its second quarter results after yesterday’s market close. The partnership reported second quarter earnings per unit (EPU) of $1.74 per limited partner diluted units, well above our expectations of $1.20 and market expectations of $1.47.  The partnership’s better-than-expected performance was primarily driven by significantly higher lease acquisition results, higher fees, and positive results from the November 2008 acquired MagTex refined products pipeline system. However, total revenue for the quarter decreased more than 61% year-over-year to $1.3 billion.  Importantly, the partnership raised its quarterly distribution by 2.5% sequentially and 11.2% year-over-year to $1.04 per unit or $4.16 per unit annualized, representing the 24th distribution increase in the past 25 quarters. Distributable cash flow increased approximately 25% year-over-year to $71.8 million.  Operating income in the Refined Products Pipeline System segment increased more than 23% year-over-year to $10.6 million, primarily resulting from ...

Two Big Reasons to Dump your Oil Refinery

Tony Daltorio, The Investment U Research Team

Quite simply, this is not a good time to be in the business of refining oil in the United States.

The obvious reason for this is the continuing recession which has led to lower demand for gasoline and other refined products. With the summer driving season past the halfway point, having the word ’staycation’ become commonplace is not good news for the refiners.

But that’s not all. And it goes well beyond simple economic downturn.

There are other factors at work. And unfortunately, many have escaped the notice of many investors and much of Wall Street.

While everyone was focused on the sharp rise recently of the price of WTI crude oil, other things have been conspiring against domestic refiners of all sorts. Here’s what you need

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For Immediate Release

Chicago, IL - June 25, 2009 - Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Stericycle (SRCL), Quest Diagnostic (DGX), Biogen Idec (BIIB), AmeriSourceBergen (ABC), Abbott Labs (ABT), Sunoco (SUN), Tesoro (TSO), AK Steel (AKS), Nucor (NUE), United States Steel (X), Fifth Third (FITB), First Horizon National (FHN), Zions Bancorp (ZION), Suntrust Banks (STI), Franklin Resources (BEN), AllianceBernstein Holding (AB), Texas Instruments (TXN), National Semiconductor (NSM) and Micron (MU).

Zacks Industry Rank Analysis is written by Charles Rotblut, CFA, Senior Market Analyst for Zacks.com.

This Week: Second-Quarter Earnings Outlook

Second-quarter earnings will be ugly.

Median EPS is projected

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