Oil refiner and marketer Western Refining Inc. (WNR) reported weaker-than-expected third quarter results, pulled down by lower margins and throughput on the back of weak fuel demand and high inventories caused by the prolonged economic slowdown. This was partially offset by lower costs and expenses. Its loss per share came in at 5 cents, wider than the Zacks Consensus Estimate of 3 cents. In the year-ago period, the Texas-based company earned $1.60 per share. Revenues were down 40.1% year over year to $1.9 billion. Western follows larger rivals Valero Energy Corp. (VLO) and Sunoco Inc. (SUN) that also posted bigger-than-expected losses. Refining Segment Results Western’s refining segment experienced a significant decline in operating income (operating income of $22.2 million vs. $180.8 million in the year-earlier quarter), adversely impacted by weak values for finished products, relative to crude and other feedstock prices. Throughput...

For Immediate Release

Chicago, IL – November 10, 2009 – Zacks Equity Research highlights NVIDIA Corp. (NVDA) as the Bull of the Day and Red Robin Gourmet Burgers (RRGB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesoro Corporation (TSO), Valero Energy Corp. (VLO) and Sunoco Inc. (SUN).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

NVIDIA Corp. (NVDA) posted revenue and earnings well above expectations. NVIDIA is poised for growth through improved cost management, rising demand for GPU and graphics chips, increased orders mainly from China and product launches.

The company is introducing new products at regular intervals and getting good feedback. We believe NVIDIA is well positioned in the longer term given its leadership in the Tegra line-up, the ramp-up

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Tesoro Corporation’s (TSO) third-quarter 2009 results came in significantly better than expected, helped by better demand balance in the company’s key West Coast region. Earnings per share came in at 24 cents, against Zacks Consensus Estimate of a penny loss. Tesoro’s outperformance is in contrast to the steep losses posted by the other major refiners that have already reported -- Valero Energy Corp. (VLO) and Sunoco Inc. (SUN). However, compared to the year-ago period, Tesoro’s earnings per share plunged 87.1%, while sales declined 45.4% to $4.7 billion -- severely hampered by depressed refining margins and lower throughput on the back of weak fuel demand and high inventories. Refining Segment Results Tesoro’s refining segment experienced a significant decline in operating income (operating income of $84 million vs. $476 million in the year-earlier quarter) due to struggling profit margins for the production of distillate ...

Oil refiner and marketer Sunoco Inc. (SUN) reported weaker-than-expected third quarter results as its refining and chemicals operations slipped in the red, pulled down by reduced margins and production. Loss per share, excluding special items, came in at 29 cents, significantly wider than the Zacks Consensus Estimate of 9 cents. In the year-ago period, the Pennsylvania-based company earned $4.78 per share. Revenues were down 42.6% year over year to $8.7 billion.   Refining & Supply   The Refining & Supply segment lost $118 million during the quarter, as against a profit of $398 million in the year-earlier period, mainly on account of lower realized margins and lower production volumes, partly canceled by lower expenses. Realized margin averaged $2.72 per barrel, down 81.7% from the third quarter of 2008, reflecting a very weak East Coast refining margin environment. Total production was down approximately 17.2% year over year to 669.2 ...

OUTLOOK The improving economic scene, both here in the U.S. as well as worldwide, is the main driver of the current oil rally that has seen the commodity settling around the $80 per barrel level. But high levels of product inventories (particularly gasoline), along with still higher supplies, will limit any sustained crude gains, in our view. But way too many factors weigh on oil prices, from OPEC decisions and geostrategic tensions to the value of the U.S. dollar and seasonal variables, to definitively size up each one of them for their respective impact on prices.  In its latest release, the Energy Information Administration (EIA) reported a less-than-anticipated increase in crude stockpiles, which rose by 800,000 barrels for the week ending October 23. However, current crude oil stocks, at 339.9 million barrels, still remain 9% above the year-earlier level as well as above the upper limit ...

Earlier today, Valero Energy Corp. (VLO) -- the largest independent refiner in the U.S. -- reported a weaker-than-expected third-quarter 2009 loss, reflecting depressed refining margins and lower throughput on the back of weak fuel demand and high inventories. This was partially offset by lower operating costs. The loss per share, excluding one-time items, came in at 39 cents, well below the Zacks Consensus Estimate of 26 cents. In the year-ago period, the Texas-based marketer of petroleum products earned $1.91 per share. Revenue was down 45.8% year-over-year to $19.5 billion. Operating loss for the quarter was $579 million ($162 million excluding one-time items), compared to operating income of $1.8 billion ($1.6 billion excluding one-time items) in the year-earlier quarter. The main factors causing the operating loss were lower diesel and jet fuel margins, coupled with smaller discounts on sour crude oil and other feedstocks. Throughput Volume...

Recently, the federal government’s Energy Information Administration (EIA) issued an overall bullish report, showing a smaller-than-expected build in crude stockpiles. Further, the data showed that gasoline inventories were down as predicted, while distillate stocks also declined, though fell short of expectations. In its release, the agency said that crude inventories rose by 1.3 million barrels for the week ending October 16, much lower than analysts' expectations. This is the second successive week in which the crude buildup has been lower than originally anticipated. A major contributing factor to the modest increase can be attributed to a fall in crude oil imports, which dropped to the lowest level in two months. Current crude oil stocks, at 339.1 million barrels, are 8.9% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart below). The ...

Yesterday, the U.S. Energy Department's weekly inventory release showed a less-than-expected build in crude stockpiles. However, the headline news was centered on a sharp drop in gasoline stocks and refinery utilization that pushed oil prices to a fresh 2009 peak and lifted energy stocks. The federal government’s Energy Information Administration (EIA) reported a 400,000 barrels rise in crude inventories for the week ending October 9, much less than analyst expectations. The modest increase can be attributed to scaled back operations by the refiners (prompted by weak profit margins) even as imports fell. This follows last week’s report, which showed an unexpected rise in oil supply figures, against consensus forecast of a buildup. Current crude oil stocks, at 337.8 million barrels, are 9.6% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart ...

Yesterday, oil refiner and marketer Sunoco Inc. (SUN) announced certain strategic actions to improve the company’s performance and competitiveness in a cost-effective manner, as it struggles to cope with the bearish refining margin environment. Sunoco said that it would indefinitely idle a New Jersey refinery, furlough 400 workers and cut its dividend in half. The company hopes that these measures will save $320 million annually, though this would also lead to $475–$550 million in largely non-cash financial charges over the next few quarters. Sunoco has decided to shut down its 145,000 barrels-per-day Eagle Point refinery in Westville, NJ, until market conditions improve. In the meantime, the company will shift production from Eagle Point to its refineries in Philadelphia and Marcus Hook, PA, and may use the idled refinery to produce alternative fuels. The Philadelphia and Marcus Hook facilities will up their utilization rates to make up ...

Highlights include ConocoPhillips (COP), Exxon Mobil Corp. (XOM), Chevron Corp. (CVX) and Valero Energy Corp. (VLO).ConocoPhillips' (COP) first-quarter results came in better than expected due to strong oil and natural gas production. Market expectations reflected the company's interim guidance provided on April 2. We have a Hold rating on COP shares, as we see better opportunities in this space through Exxon (XOM) and Chevron (CVX). Both of these are scheduled to report quarterly results next week.The company reported recurring EPS of $0.56, down from $2.62 in the first quarter of 2008. The single largest contributor to the negative comparison is the price of crude oil, which will be a recurring theme this earnings season in the oil patch.At $42.97 a barrel, the benchmark West Texas Intermediate (WTI) was down more than 56% from the year-earlier level. Benchmark ...