Chevron Corp Earnings Cheat Sheet: Revenue and Net Income Grow

S&P 500 (NYSE:SPY) component Chevron Corporation (NYSE:CVX) reported net income above Wall Street’s expectations for the third quarter. Chevron provides management and technology support to international subsidiaries that operate petroleum, chemicals, mining, power generation, and energy services.

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Chevron Earnings Cheat Sheet for the Third Quarter

Results: Net income for the oil and gas company rose to $7.83 billion ($3.92 per share) vs. $3.77 billion ($1.87 per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 29.6% to $64.43 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CVX beat the mean analyst estimate of $3.42 per share. It fell short of the average revenue estimate of $67.91 billion.

Quoting Management: “We had another successful quarter,” said Chairman and CEO John Watson, “with both strong earnings and cash flow. Current quarter earnings for our upstream operations benefited from higher crude oil prices on world markets. At the same time, gains on asset sales and improved margins for refined petroleum products contributed to increased earnings for our downstream businesses.” Watson commented, “We continue to progress our major capital projects. The recent decision to develop the Wheatstone LNG project represents a major milestone in the company’s efforts to commercialize our significant natural gas resource base in Australia. The Wheatstone and Gorgon LNG projects are expected to provide substantial new energy supplies to meet growing demand in the Asia-Pacific region.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 42.9% and in the first quarter, the figure rose 36.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 30 cents in the second quarter, by 10 cents in the first quarter, and by 14 cents in the fourth quarter of the last fiscal year.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 30.1% to $68.95 billion while the figure rose 29.1% in the first quarter from the year earlier.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is $3.20 per share, dropping from $3.40 a month ago. Over the past three months, the average estimate for the fiscal year has climbed from $13.21 per to share to $13.55.

Competitors to Watch: Exxon Mobil Corporation (NYSE:XOM), BP plc (NYSE:BP), ConocoPhillips (NYSE:COP), Marathon Oil Corporation (NYSE:MRO), TOTAL S.A. (NYSE:TOT), Hess Corp. (NYSE:HES), Suncor Energy Inc. (NYSE:SU), Repsol YPF, S.A. (REPYY), and Valero Energy Corporation (NYSE:VLO).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)