Chevron Beats on Both Top and Bottom Lines

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

The 10-second takeaway
For the quarter ended June 30 (Q2), Chevron beat expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank.

Gross margins expanded, operating margins were steady, and net margins contracted.

Revenue details
Chevron tallied revenue of $59.78 billion. The three analysts polled by S&P Capital IQ expected to see a top line of $58.37 billion on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $64.41 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $3.56. The 16 earnings estimates compiled by S&P Capital IQ predicted $3.24 per share. GAAP EPS of $3.66 for Q2 were 4.9% lower than the prior-year quarter's $3.85 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.2%, 710 basis points better than the prior-year quarter. Operating margin was 17.0%, about the same as the prior-year quarter. Net margin was 11.9%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $57.90 billion. On the bottom line, the average EPS estimate is $2.95.

Next year's average estimate for revenue is $253.26 billion. The average EPS estimate is $12.60.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,034 members out of 4,195 rating the stock outperform, and 161 members rating it underperform. Among 984 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 960 give Chevron a green thumbs-up, and 24 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 $123.42.

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