Based in San Ramon, California, Chevron Corporation (CVX) is a fully integrated oil and gas company that engages in the exploration, production, storage, pipeline transportation, refining marketing, and distribution of oil and gas products. Valued at a market cap of $279.1 billion, the company is expected to announce its fiscal Q3 earnings results before the market opens on Friday, Nov. 1.
Ahead of this event, analysts project the energy company to report a profit of $2.80 per share, down 8.2% from $3.05 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the last four quarters while missing on other two occasions.
In Q2, the company reported an EPS of $2.55, which missed the consensus estimates by 11.5%. Lower margins on refined product sales and adverse foreign currency effects primarily drove the weaker-than-expected performance.
For fiscal 2024, analysts expect CVX to report an EPS of $11.09, down 15.5% from $13.13 in fiscal 2023.
Shares of CVX have gained 1.3% on a YTD basis, significantly underperforming both the S&P 500 Index's ($SPX) 22.6% surge and the Energy Select Sector SPDR Fund’s (XLE) 10.4% return over the same period.
On Oct. 7, Chevron Canada Limited, an indirect subsidiary of CVX, announced a definitive agreement to sell a few of its critical assets to Canadian Natural Resources Limited (CNQ) for $6.5 billion. The sale aligns with CVX's objective to sell off between $10 billion and $15 billion in assets by 2028 to improve its operational efficiency and financial health.
On Aug. 2, shares of CVX fell 2.7% after its Q2 earnings release. The company’s revenue increased 4.7% year over year to $51.18 billion, surpassing the Wall Street estimates of $50.78 billion. However, its 17.2% decline in adjusted EPS might have hurt investor confidence.
Analysts' consensus view on Chevron Corporation’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 21 analysts covering the stock, 12 recommend a "Strong Buy," two suggest a "Moderate Buy," and seven indicate a “Hold.” This configuration is slightly less bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
CVX’s average analyst price target is $168.80, indicating an 11.6% potential upside from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
