Why did DK's Q4 earnings fall short of forecasts?

Delek US Holdings (DK) experienced a significant decline in its Q4 earnings, missing forecasts, due to several key factors:

1. **Refining Segment Challenges**: The refining segment faced substantial headwinds, primarily due to weaker refining crack spreads. This is evident from the company's financial performance, which was impacted by planned downtime at two of its refineries. This downtime, coupled with lower refining crack spreads, resulted in reduced refining earnings and contributed to the overall earnings shortfall.
2. **Revenue Shortfall**: Delek US reported revenue of $2.37 billion for the quarter ended December 2024, which missed the Zacks Consensus Estimate by 6.92%. This shortfall can be attributed to decreased year-over-year operating costs and lower refining volumes. The Logistics segment's contribution was also lower due to reduced third-party volumes.
3. **Economic Pressures**: The broader economic environment posed challenges for Delek US. Weakness in the refining sector and lower crude oil prices have been persistent themes. These factors, combined with operational challenges at its refineries, led to a decline in earnings and revenue.

In summary, Delek US Holdings' Q4 earnings fell short of forecasts due to refining segment challenges, revenue shortfall, and economic pressures. These factors collectively contributed to a difficult financial performance for the company during the quarter.