Insights into Chevron's Upcoming Earnings

Chevron CVX is set to give its latest quarterly earnings report on Friday, 2024-11-01. Here's what investors need to know before the announcement.

Analysts estimate that Chevron will report an earnings per share (EPS) of $2.77.

Anticipation surrounds Chevron's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

During the last quarter, the company reported an EPS missed by $0.38, leading to a 0.0% drop in the share price on the subsequent day.

Here's a look at Chevron's past performance and the resulting price change:

Market Performance of Chevron's Stock

Shares of Chevron were trading at $148.05 as of October 30. Over the last 52-week period, shares are up 1.02%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Views on Chevron

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Chevron.

Analysts have given Chevron a total of 12 ratings, with the consensus rating being Outperform. The average one-year price target is $173.08, indicating a potential 16.91% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Shell and TotalEnergies, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• For Shell, analysts project an Outperform trajectory, with an average 1-year price target of $84.0, indicating a potential 43.26% downside.
• The prevailing sentiment among analysts is an Neutral trajectory for TotalEnergies, with an average 1-year price target of $74.5, implying a potential 49.68% downside.

Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Shell and TotalEnergies, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Chevron ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity.

About Chevron

Chevron is an integrated energy company with exploration, production, and refining operations worldwide. It is the second-largest oil company in the United States with production of 3.1 million of barrels of oil equivalent a day, including 7.7 million cubic feet a day of natural gas and 1.8 million of barrels of liquids a day. Production activities take place in North America, South America, Europe, Africa, Asia, and Australia. Its refineries are in the US and Asia for total refining capacity of 1.8 million barrels of oil a day. Proven reserves at year-end 2023 stood at 11.1 billion barrels of oil equivalent, including 6.0 billion barrels of liquids and 30.4 trillion cubic feet of natural gas.

Chevron's Economic Impact: An Analysis

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Chevron's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 4.99%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Chevron's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 8.94%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.77%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Chevron's ROA excels beyond industry benchmarks, reaching 1.7%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.15, Chevron adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Chevron visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.