## Chevron (CVX) Earnings Preview: What to Expect on November 1st
Investors are eagerly awaiting Chevron’s (CVX) third-quarter 2024 earnings report, scheduled for release on Friday, November 1st. The energy giant, known for its global exploration, production, and refining operations, is expected to deliver strong results, but the real focus will be on the company’s guidance for the next quarter.
Analysts have pegged Chevron’s earnings per share (EPS) at $2.77, and the company’s performance in exceeding or falling short of this estimate will be a key indicator for investors. However, it’s important to remember that guidance often plays a more significant role in market reactions than simply meeting earnings expectations.
### Looking Back at Past Performance
Chevron’s recent earnings history provides valuable insight into its performance trends. In the previous quarter, the company reported an EPS that missed estimates by $0.38, resulting in a 0.0% drop in its share price the following day. Here’s a quick look at Chevron’s recent earnings and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 2.93 | 2.55 | -3.0% |
| Q1 2024 | 2.68 | 2.93 | 0.0% |
| Q4 2023 | 3.21 | 3.45 | 3.0% |
| Q3 2023 | 3.33 | 3.05 | -7.0% |
### Market Sentiment and Analyst Views
Gauging market sentiment and analyst expectations is crucial for investors trying to make informed decisions. When it comes to Chevron, the current consensus among analysts is positive. Out of 12 ratings, the average rating for Chevron is “Outperform,” with an average one-year price target of $173.08. This represents a potential upside of 16.91% from its current trading price.
### Chevron’s Performance Compared to its Peers
To get a better understanding of Chevron’s standing within the industry, it’s helpful to compare it to its peers. Shell and TotalEnergies are two other major players in the oil and gas sector. Analyst expectations for these companies differ considerably from Chevron’s:
*
Shell:
Analysts project an “Outperform” trajectory for Shell, with an average one-year price target of $84.0. However, this represents a potential downside of 43.26% from its current price.*
TotalEnergies:
The prevailing sentiment among analysts for TotalEnergies is “Neutral,” with an average one-year price target of $74.5, implying a potential downside of 49.68% from its current price.### Key Metrics: A Closer Look
The following table highlights key financial metrics for Chevron, Shell, and TotalEnergies, offering a clearer picture of their relative performance and market positions:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Chevron | Outperform | 4.99% | $14.70B | 2.77% |
| Shell | Outperform | -0.15% | $11.90B | 1.89% |
| TotalEnergies | Neutral | -4.56% | $14.09B | 3.21% |
Key Takeaway:
Chevron boasts the highest revenue growth among its peers, as well as the largest Gross Profit margin. However, it has the lowest Return on Equity, suggesting potential challenges in effectively using equity capital to generate returns for shareholders.### About Chevron: A Brief Overview
Chevron is a globally recognized energy giant with a comprehensive range of operations spanning from exploration and production to refining. Based in the United States, Chevron is the second-largest oil company, producing 3.1 million barrels of oil equivalent per day, including 7.7 million cubic feet of natural gas and 1.8 million barrels of liquids. Its operations extend across North and South America, Europe, Africa, Asia, and Australia. The company also owns refineries in the US and Asia, with a total refining capacity of 1.8 million barrels of oil per day. Chevron holds proven reserves of 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: A Look at Key Metrics
Market Capitalization:
Chevron’s significant market capitalization sets it apart from industry averages, signifying substantial size and market recognition.Revenue Growth:
Chevron has achieved impressive revenue growth in recent months. As of June 30, 2024, the company reported a remarkable 4.99% revenue growth rate, showcasing a significant increase in its top-line earnings.Net Margin:
Chevron’s strong financial health is evidenced by its exceptional net margin, exceeding industry averages. With a notable 8.94% net margin, the company demonstrates robust profitability and effective cost management.Return on Equity (ROE):
While Chevron’s ROE falls below industry benchmarks, suggesting potential difficulties in using equity capital efficiently, it stands at 2.77%. The company may need to address this challenge to generate satisfactory returns for shareholders.Return on Assets (ROA):
Chevron’s ROA excels beyond industry benchmarks, reaching 1.7%. This indicates efficient asset management and strong financial health.Debt Management:
Chevron adopts a cautious financial strategy, maintaining a below-average debt-to-equity ratio of 0.15. This demonstrates a balanced approach to debt management.Keep an eye out for Chevron’s Q3 2024 earnings report on November 1st. Stay tuned for further insights and analysis on the company’s financial performance, guidance, and market outlook.
