Chevron’s 3Q16 estimated and actual performance

Chevron (CVX) posted its 3Q16 results on October 28, 2016. Its revenues surpassed Wall Street analysts’ estimates by 5.0%. In 3Q16, Chevron reported EPS (earnings per share) of $0.68. However, after adjusting it for special items, it was $0.49 compared to the estimated $0.37, beating estimates. CVX’s 3Q16 adjusted EPS was 55.0% lower than EPS in 3Q15.

Chevron’s 3Q16 Estimates and How It Really Performed

Chevron’s 3Q16 earnings review

In 3Q16, Chevron’s reported earnings were $1.3 billion compared to $2.0 billion in 3Q15. The fall was due to the year-over-year fall in earnings in its downstream segment, partially offset by a rise in earnings in its upstream segment.

Chevron’s 3Q16 earnings also included the positive impact of special items such as deferred tax due to the tax rate change in the United Kingdom. It also included an Ecuadorian arbitration award and the effects of foreign exchange.

Earnings from Chevron’s upstream segment rose from $59.0 million in 3Q15 to $454.0 million in 3Q16. This was due to lower losses in the US upstream segment from lower operating and depreciation costs and lower tax expenses, partially offset by weaker crude oil and natural gas realizations. The downstream segment’s earnings fell from $2.2 billion in 3Q15 to $1.1 billion in 3Q16 due to lower refining margins.

Total (TOT), CVX’s peer, also saw its net adjusted earnings fall 25.0% to $2.1 billion in 3Q16 over 3Q15. ExxonMobil’s (XOM) earnings fell 38.0% in 3Q16 over 3Q15. However, Suncor Energy (SU) saw its earnings turn positive in 3Q16 compared to a loss in 3Q15.

The Vanguard Energy ETF (VDE) has a ~38.0% exposure to integrated energy sector stocks.

In the next part of this series, we’ll analyze CVX’s segmental performance in 3Q16.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

172.31.71.127