NEW YORK (TheStreet) -- Valero Energy (VLO) shares are up 1.2% to $50.44 in pre-market trading on Monday after the company reported second quarter earnings of $1.22 per diluted share on revenue of $34.91 billion.
Analysts were expecting earnings of $1.21 per share on revenue of $29.16 billion.
The increase in profits was driven by cheaper domestic crude that is replacing imported foreign oil. The company's Quebec City refinery saw consumption jump 83% during the period.
TheStreet Ratings team rates VALERO ENERGY CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALERO ENERGY CORP (VLO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."