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Chevron Misses Q1 Revenue Estimate but Earnings Beat Expectations (CVX)

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Weakness in oil prices amid global macroeconomic uncertainty and drop in refinery input, to a some extent, put pressure on Chevron Corp.’s (NYSE: CVX) fiscal first-quarter results with revenue falling short of the Street’s estimate.

However, the energy giant handed better than expected earnings.

For the quarter, Chevron Corp reported non-GAAP/adjusted earnings of $3.18 a share compared to $3.27 a share, in the same quarter of last year. Revenue during the quarter contracted to $56.82 billion from $60.71 billion, in the year-earlier quarter. Revenue was impacted due to wild fluctuations in crude oil prices and problems arising from its refinery in California.

Analysts’ consensus estimate was for earnings of $3.05 a share on revenue of $67.73 billion, according to a data compiled by Thomson Reuters.

The Company reported oil production of 2.65 million barrels per day during the fiscal first quarter, which was a tad higher than year earlier production of 2.63 million barrels per day.

The Company’s earnings were hit due to sharp drop in refining and marketing, which slumped by 350,000 barrels per day to 576 barrels per day. The Company attributed this to shuttering of refinery in California. Besides, Chevron top line was also hit due to lesser money made from its oil and gas production business, which was at $1.13 billion.

The Company also announced an 11.1% increase in its quarterly dividend.

“Our consistent financial performance has enabled us to significantly increase the dividend again, and fund major development projects that are the foundation of the company’s future growth in production, earnings and cash flows,” said Chevron chairman and CEO John Watson in a statement.

Shares ended 1.29% higher on Friday at $120.04.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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