Phillips 66 (PSX - Free Report) came out with quarterly earnings of $4.87 per share, beating the Zacks Consensus Estimate of $2.76 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 76.45%. A quarter ago, it was expected that this oil refiner would post earnings of $2.50 per share when it actually produced earnings of $3.10, delivering a surprise of 24%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Phillips 66, which belongs to the Zacks Oil and Gas - Refining and Marketing industry, posted revenues of $29.84 billion for the quarter ended December 2018, missing the Zacks Consensus Estimate by 15.96%. This compares to year-ago revenues of $30.12 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Phillips 66 shares have added about 6.5% since the beginning of the year versus the S&P 500's gain of 8%.

What's Next for Phillips 66?

While Phillips 66 has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Phillips 66 was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future.