An Earnings Miss: U.S. energy giant Chevron Corporation (NYSE:CVX) reported adjusted earnings per share of 73 cents, lower than the Zacks Consensus Estimate of $1.27. The underperformance primarily stems from a one-time tax adjustment related to the recent overhaul.
Shares of Chevron, meanwhile, fell 2.5% in premarket trading.
Estimate Revision Trend & Surprise History: Investors should note that the Zacks Consensus Estimate for the quarter has been unchanged in the last 7 days.
Nonetheless, Chevron has a good earnings surprise history. Before posting the earnings miss in Q4, the company delivered positive surprises in three of the prior four quarters, as shown in the chart below:
Chevron Corporation Price and EPS Surprise
Chevron Corporation Price and EPS Surprise | Chevron Corporation Quote
Overall, the company has a positive earnings surprise of 1.77% in the trailing four quarters.
Revenue Came in Higher than Expected: Chevron posted revenues of $37,616 million, slightly above the Zacks Consensus Estimate of $37,549 million.
Key Stats: Chevron’s total production of crude oil and natural gas increased 2.7% compared with last year’s corresponding period to 2,740 thousand oil-equivalent barrels per day (MBOE/d). The U.S. output fell 1.6% year over year to 671 MBOE/d but the company’s international operations (accounting for 76% of the total) was up 4.1% to 2,069 MBOE/d.
The rise in production was supported by higher oil realizations, the result being a healthy improvement in Chevron’s upstream segment profit – from $930 million in the year-earlier quarter to $5,291 million.
Chevron’s downstream segment achieved earnings of $1,279 million, a massive 258.3% higher than the profit of $357 million last year. The jump primarily underlined benefit from U.S. tax reforms and increase in domestic refined product sales.
Zacks Rank: Currently, Chevron carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. While things apparently do not look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this Chevron earnings report later!
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Chevron Corporation (CVX): Free Stock Analysis Report
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