Chevron Whiffs on Revenues


Chevron (NYS: CVX) reported earnings on Jan. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Chevron whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and GAAP earnings per share increased significantly.

Gross margins expanded, operating margins increased, net margins contracted.

Revenue details
Chevron recorded revenue of $58.03 billion. The four analysts polled by S&P Capital IQ expected a top line of $77.41 billion. Sales were 39% higher than the prior-year quarter's $51.85 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $2.58. The 17 earnings estimates compiled by S&P Capital IQ averaged $2.94 per share on the same basis. GAAP EPS of $3.92 for Q4 were 2.3% lower than the prior-year quarter's $2.64 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.4%, 150 basis points better than the prior-year quarter. Operating margin was 16.6%, 140 basis points better than the prior-year quarter. Net margin was 8.5%, 370 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $71.95 billion. On the bottom line, the average EPS estimate is $3.07.

Next year's average estimate for revenue is $272.26 billion. The average EPS estimate is $12.97.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,887 members out of 4,044 rating the stock outperform, and 158 members rating it underperform. Among 1,037 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,011 give Chevron a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chevron is outperform, with an average price target of $121.39.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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