Here’s What to Expect in Chevron’s Earnings Report

Chevron Corporation (NYSE: CVX) is set to report its financial results for the third quarter of fiscal year 2016 before the opening bell on October 28. The energy giant has been through tough times together with its major rivals primarily because of the low oil price environment.

The earnings per share of the oil corporation appear to have begun regaining stability as it was able to surpass the estimates of analysts during the previous quarter. However, market analysts anticipate that it will report lower earnings compared to the prior quarter when its earnings per share stood at $0.49.

The consensus earnings per share estimate for Chevron clocks in at $0.39. If this projection is reached, the company will record a year-over-year decline of 64 percent as the earnings per share was $1.09 for the same quarter last year.

Meanwhile, the energy company’s revenues are anticipated to stand at $30.06 billion, reflecting a 12 percent decline from the revenue of $34.3 billion that Chevron registered during the same quarter last year.

The multibillion oil company has displayed weakness in terms of its cash flows, but its business operations still manage to positively contribute to its liquidity requirements.  Chevron has been grappling with the lower prices of crude oil, as evident in the volatility in the topline of its income statement.

During the early part of the current year, the CVX shares significantly plunged to nearly $79. This level is the lowest so far for 2016.

Yet, the energy corporation’s stock managed to bounce back from that area as it stands at 101.19 as of 9:00 AM GMT -4 on October 27.

Market analysts have bullish sentiments on Chevron’s stock. Out of the total of 30 research firms covering the stock, 19 suggested a Buy, while the rest have maintained a Hold rating.

Some of the investment research firms that have issued a Buy rating include Deutsche Bank, Societe Generale, and HSBC. Meanwhile, brokerages such as Wells Fargo and Morgan Stanley have maintained a Hold rating on the oil company’s stock.

The consensus target price of analysts stood at $105.09, showing that the energy giant’s stock has an upside potential of 3.85 percent compared to the close yesterday.

We are also bullish on CVX shares and we anticipate that it will report upbeat financial results in the upcoming earnings release.

Leave a Reply

Get Pre-Market Alerts!

Get Pre-Market Analysts' Upgrades, Downgrades, Earnings & Initiations with our FREE daily email newsletter.