Chevron Shares Drop as Honeywell Stock Increases After Earnings

Chevron Corporation (NYSE:CVX) reported its results for the fourth quarter. Net income for Chevron Corporation fell to $5.1 billion ($2.58 per share) vs. $5.29 billion ($2.64 per share) a year earlier. This is a decline of 3.7% from the year earlier quarter. Revenue fose 11.5% to $58 billion from the year earlier quarter. CVX fell short of the mean analyst estimate of $2.86 per share. It fell short of the average revenue estimate of $71.08 billion.

“Chevron had an outstanding year financially,” said Chairman and CEO John Watson, “with record earnings and cash flow. This reflects our exceptionally strong upstream portfolio, as well as higher 2011 crude prices. Full-year earnings also benefited from improved downstream sales margins. Our financial strength enabled us to both invest in our development projects and to acquire several new resource opportunities. At the same time, we raised the annual dividend twice and increased outlays for our common stock repurchase program. Beyond our strong financial performance, we also had an outstanding year in terms of oil and gas reserves replacement.”

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) and Valero Energy Corporation (NYSE:VLO).

Honeywell International Inc. (NYSE:HON) reported its results for the fourth quarter. Reported a loss of $310 million (40 cents per diluted share) in the quarter. Honeywell International Inc. had a net income of $369 million or 47 cents per share in the year earlier quarter. Revenue rose 8.3% to $9.47 billion from the year earlier quarter. HON reported adjusted net income of $1.05 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $1.04 per share. Analysts were expecting revenue of $9.56 billion.

“Honeywell had a terrific 2011,” said Honeywell Chairman and CEO Dave Cote. “We executed across the portfolio with record organic sales growth and segment margins. Our 2011 performance reflects the operational and financial disciplines that underpin the transformation that has taken place at the company over the last 10 years. We deployed the Honeywell five Initiatives – Growth, Productivity, Cash, People, and our Enablers, and created a common One Honeywell culture committed to continuous improvement. As a result, we built a better set of businesses with Great Positions in Good Industries, a terrific performance track record, a great leadership team with a truly global focus, a very full pipeline of new products and technologies, and our key process initiatives that are gaining momentum. We’ve come a long way, and we feel even better about our future.”

Competitors to Watch: The Boeing Company (NYSE:BA), United Technologies Corp. (NYSE:UTX), Goodrich Corporation (NYSE:GR), Esterline Tech. Corp. (NYSE:ESL), Triumph Group, Inc. (NYSE:TGI), General Electric Company (NYSE:GE), Rockwell Collins, Inc. (NYSE:COL), HEICO Corporation (NYSE:HEI), and Lockheed Martin Corp. (NYSE:LMT).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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