Analysts expect earnings per share of $0.24 and revenue of around $5.8 billion.
The company faces challenges from declining gasoline demand and rising interest rates but remains resilient with a stable, fee-based revenue model.
Financial metrics indicate a positive market valuation with a P/E ratio of 14.50 and potential undervaluation with a price-to-sales ratio of 0.09.
Global Partners LP (NYSE:GLP) is preparing to announce its quarterly earnings on February 28, 2025. Analysts expect the company to report earnings per share of $0.24 and revenue of around $5.8 billion. GLP operates in the oil and gas refining and marketing sector, a segment currently facing challenges due to declining gasoline demand and rising interest rates.
The Zacks Oil and Gas – Refining & Marketing MLP industry is experiencing a 5% drop in gasoline demand, driven by improved fuel efficiency, electric vehicle adoption, and changing consumer habits. These factors have led to stagnant retail fuel sales, impacting long-term growth. Despite these challenges, GLP remains resilient due to its stable, fee-based revenue model and diversified operations.
GLP’s financial metrics reflect its market position. With a price-to-earnings (P/E) ratio of 14.50, the market values its earnings positively. The company’s price-to-sales ratio of 0.09 indicates that the stock is trading at a fraction of its sales, suggesting potential undervaluation. Additionally, the enterprise value to sales ratio of 0.19 highlights its valuation relative to revenue.
The company’s enterprise value to operating cash flow ratio stands at 28.48, showing how the market values its cash flow. GLP’s earnings yield of 6.90% provides insight into the return on investment for shareholders. However, the debt-to-equity ratio of 2.81 indicates a higher level of debt compared to equity, which could be a concern in a rising interest rate environment.
Despite these financial challenges, GLP maintains a current ratio of 1.14, suggesting a reasonable level of short-term financial health. This ratio indicates that GLP has slightly more current assets than current liabilities, providing some cushion against immediate financial pressures. As the company navigates industry challenges, its robust infrastructure assets and long-term contracts offer stability.
