Chevron Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Chevron (NYSE:CVX) will unveil its latest earnings on Friday, November 2, 2012. Chevron provides management and technology support to international subsidiaries that operate petroleum, chemicals, mining, power generation, and energy services.

Chevron Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $2.87 per share, a decline of 26.8% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up. It has dropped from $3.02 during the last month. Analysts are projecting profit to rise by 4.5% compared to last year’s $12.84.

Past Earnings Performance: Last quarter, the company topped expectations by 43 cents, coming in at profit of $3.66 per share versus a mean estimate of net income of $3.23 per share. This followed two straight quarters of missing estimates.

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A Look Back: In the second quarter, profit fell 6.8% to $7.21 billion ($3.66 a share) from $7.73 billion ($3.85 a share) the year earlier, but exceeded analyst expectations. Revenue fell 9.2% to $62.61 billion from $68.95 billion.

Stock Price Performance: Between October 1, 2012 and October 29, 2012, the stock price dropped $6.07 (-5.2%), from $117.25 to $111.18. The stock price saw one of its best stretches over the last year between July 10, 2012 and July 20, 2012, when shares rose for nine straight days, increasing 5.1% (+$5.31) over that span. It saw one of its worst periods between May 1, 2012 and May 9, 2012 when shares fell for seven straight days, dropping 6% (-$6.49) over that span.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 29.6% in the third quarter of the last fiscal year, 22.7% in the fourth quarter of the last fiscal year and 0.6%in the first quarter before dropping in the second quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 4.2% in the first quarter before dropping in the second quarter.

Wall St. Revenue Expectations: Analysts predict a decline of 0.5% in revenue from the year-earlier quarter to $64.09 billion.

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

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