Chevron’s Upcoming Earnings: What Analysts Expect for Q4 and Beyond
Chevron Corporation (CVX), a prominent player in the global energy sector with a market cap of $284.5 billion, is poised to announce its fiscal Q4 earnings results before the market opens on Friday, Jan. 31. Headquartered in San Ramon, California, Chevron participates in both oil and gas operations and chemical production, maintaining a balance in upstream and downstream activities to withstand market fluctuations.
Anticipated Earnings Decline
Analysts predict Chevron will report a profit of $2.24 per share for the upcoming quarter, representing a significant 35.1% decrease from $3.45 per share in the same quarter last year. Historically, Chevron has surpassed earnings expectations in three of the last four quarters, although it missed its target once. The company did manage to exceed the consensus EPS estimate by 1.6% in its most recent reporting period.
Future Earnings Projections
Looking ahead, analysts forecast an EPS of $10.22 for fiscal 2024, a drop of 22.2% from $13.13 in fiscal 2023. However, optimism remains for fiscal 2025, when EPS is expected to grow by 7.4%, reaching $10.98.
Chevron’s Market Performance
Over the last year, Chevron’s stock has underperformed compared to broader market indices, with a rise of just 7.5%. In contrast, the S&P 500 Index ($SPX) has surged by 24.4%, while the Energy Select Sector SPDR Fund (XLE) has shown nearly 12% growth year-to-date.
Recent Stock Movement and Earnings Results
On Nov. 1, CVX shares increased by 2.9% following stronger-than-expected Q3 results, which included an EPS of $2.51 and revenue of $50.7 billion, both above analyst estimates. This performance was primarily driven by record production levels in the Permian Basin and successful contributions from the PDC Energy acquisition that enhanced U.S. upstream output. Chevron’s robust free cash flow of $5.6 billion also played a crucial role in boosting shareholder returns, which included $2.9 billion in dividends and $4.7 billion in stock buybacks, despite a drop in profit due to weaker oil prices.
Analyst Sentiment on Chevron
A majority of analysts maintain a positive outlook on CVX stock, with a consensus rating of “Strong Buy.” Out of 22 analysts, 15 advocate for a “Strong Buy,” while two recommend “Moderate Buys” and five suggest holding the stock. This is a more optimistic stance compared to three months ago when only 13 analysts had a “Strong Buy” recommendation.
The average price target for Chevron among analysts stands at $176, indicating a potential upside of 11.2% from current trading levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
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