Chevron Earnings: CLIMBS Above Profit Estimate, Short on Revenue Mark

S&P 500 (NYSE:SPY) component Chevron Corporation (NYSE:CVX) reported its results for the second 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 Corporation Earnings Cheat Sheet

Results: Net income for Chevron Corporation fell to $7.21 billion ($3.66 per share) vs. $7.73 billion ($3.85 per share) a year earlier. This is a decline of 6.8% from the year-earlier quarter.

Revenue: Fell 9.2% to $62.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chevron Corporation beat the mean analyst estimate of $3.23 per share. It fell short of the average revenue estimate of $68.44 billion.

Quoting Management: “Our second quarter earnings and cash flow were among our strongest ever, even with softer oil markets,” said Chairman and CEO John Watson. “Despite current weakness in the global economy, we continue to invest in our long-term growth projects to help deliver affordable energy to meet future demand. We took several important steps to advance our major upstream capital projects, in particular achieving milestones in our natural gas development projects in the Asia-Pacific region. We also expanded our global exploration resource acreage, including new leases in the Gulf of Mexico where we already hold a significant position.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 30.1%.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 3 cents, and in the fourth quarter of the last fiscal year, it came in under estimates by 28 cents.

Net income has increased 29% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than twofold from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from $3.34 a share to $2.95 over the last ninety days. Over the past sixty days, the average estimate for the fiscal year has reached $12.47 per share, a decline from $13.39.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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