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Chevron's Third Quarter Earnings Report
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Chevron (NYSE:CVX) announced its results for the third quarter on November 2, 2012. Chevron provides management and technology support to international subsidiaries that operate petroleum, chemicals, mining, power generation, and energy services.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Everything Investors Need To Know About Earnings
The Numbers: Chevron missed estimates with $2.69 per share and revenues of $56 billion. Analysts were expecting $2.85 per share and revenues of $68.44 billion. Revenue fell 8.2% from the same period last year while EPS is down 31.4%. The company's net income for the quarter fell 32.3% to $5.3 billion. This marks the second quarter in a row that the company's net income has fallen after profits tumbled 6.8% in the second quarter.
Management Quote: "This quarter's earnings were solid, but off from their near record level of a year ago," said Chairman and CEO John Watson. "Crude oil prices were down and we had a heavy period of planned oil field maintenance which temporarily reduced oil and gas production in several locations. Foreign currency movements also hurt our results this quarter, while they benefited the year-ago period."
A Look Back: Net income has increased 13.9% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than twofold from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $2.98 a share to $3.15 over the last 90 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $12.79 per share, falling from $12.93 30 days ago.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Everything Investors Need To Know About Earnings
The Numbers: Chevron missed estimates with $2.69 per share and revenues of $56 billion. Analysts were expecting $2.85 per share and revenues of $68.44 billion. Revenue fell 8.2% from the same period last year while EPS is down 31.4%. The company's net income for the quarter fell 32.3% to $5.3 billion. This marks the second quarter in a row that the company's net income has fallen after profits tumbled 6.8% in the second quarter.
Management Quote: "This quarter's earnings were solid, but off from their near record level of a year ago," said Chairman and CEO John Watson. "Crude oil prices were down and we had a heavy period of planned oil field maintenance which temporarily reduced oil and gas production in several locations. Foreign currency movements also hurt our results this quarter, while they benefited the year-ago period."
A Look Back: Net income has increased 13.9% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than twofold from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $2.98 a share to $3.15 over the last 90 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $12.79 per share, falling from $12.93 30 days ago.
by
Investopedia Staff
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