With a market cap of $284.5 billion, San Ramon, California-based Chevron Corporation (CVX) is a leading global energy company engaged in integrated oil, gas, and chemical operations. With diverse upstream and downstream activities, Chevron remains well-positioned to navigate industry volatility while driving advancements in energy and sustainability. CVX is slated to announce its fiscal Q4 earnings results before the market opens on Friday, Jan. 31.
Ahead of this event, analysts expect the oil company to report a profit of $2.24 per share, a 35.1% dip from $3.45 per share in the year-ago quarter. The company has exceeded Wall Street's earnings expectations in three of the past four quarters while missing on another occasion. CVX surpassed the consensus EPS estimate by a 1.6% margin in the most recent quarter.
For fiscal 2024, analysts expect CVX to report EPS of $10.22, marking a decline of 22.2% from $13.13 in fiscal 2023. Nevertheless, EPS is expected to rebound in fiscal 2025, anticipating a 7.4% year-over-year growth, reaching $10.98.
Shares of Chevron have lagged behind the broader markets over the past 52 weeks, gaining 7.5%, while the broader S&P 500 Index ($SPX) has risen 24.4%, and the Energy Select Sector SPDR Fund (XLE) has returned nearly 12% on a YTD basis.
Shares of CVX rose 2.9% on Nov. 1 primarily due to better-than-expected Q3 results, including EPS of $2.51 and revenue of $50.7 billion, both surpassing the consensus. The outperformance was driven by record production from the Permian Basin and contributions from the PDC Energy acquisition, which bolstered U.S. upstream output. Investors were also encouraged by Chevron's strong free cash flow of $5.6 billion, which supported robust shareholder returns, including $2.9 billion in dividends and $4.7 billion in share buybacks. Despite a decline in profit from weaker oil prices and narrower downstream margins, the company’s operational resilience and efficient capital allocation supported the stock's rise.
Analysts' consensus view on CVX stock remains bullish, with a "Strong Buy" rating overall. Out of 22 analysts covering the stock, 15 recommend a "Strong Buy," two "Moderate Buys," and five give a "Hold" rating. This configuration is more bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
The average analyst price target for CVX is $176, suggesting a potential upside of 11.2% from the current levels.
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