Chevron Corporation (NYSE: CVX) has confirmed the release date for its Q4 2021 earnings, which will be on Friday, January 28, 2022, before the market opens.
What to looking for
The company has continued to exercise capital discipline and manage its portfolio to advance its lower carbon and high return objectives. When the company reported its Q3 2021 report, it indicated that it had cut capital spending by 22%. Investors will be keen on these metrics and earnings growth when the company releases the results on Friday.
Earnings: Stockearning’s estimated EPS for Q4 2021 will be $3.07 per share, representing a YoY increase of 308%. In the last quarter, the company was expected to report $2.21 per share earnings but produced earnings of $2.96, representing a 33.94% earnings surprise. In addition, historical EPS performance shows that in the past 12 quarters shows that the company has beat estimates nine times (75%) and lost thrice (25%).
Revenue: For the current quarter, the company expects revenue of $45.01 billion, representing a YoY increase of 78.3%. In the last quarter, the company has sales and operating revenues of $43 billion relative to $24 billion a year before. The average sales price per crude oil and natural gas liquids barrel was $58 in Q3, while natural gas sales price was $3.25 per thousand cubic feet. Earnings in the third quarter were the highest since Q1 2013, attributed to improving market conditions, low-cost structure, and strong operational performance.
Stock movement: CVX shares have gained 12.2% since the company released its third-quarter earnings. However, CVX shares have been DOWN 27 times out of the past 48 quarters. So, the historical price reaction suggests a 56% probability of the share price going DOWN once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 1%, while the predicted move on the seventh day is 2%.
What analysts are saying
Truist analyst Neal Dingmann raised his price target in CVX from $150 to $167 and maintained a Buy rating in the stock as part of his expansive research note covering his Exploration & Production group model. As he boosts his 2022 oil price deck by roughly 10% and his 2023 deck by around 8%, the analyst adds several oil-weighted E&P companies to justify higher price targets. Whereas the oil strip continues strongly to be backwardated, Dingmann notes that the present natural gas strip has "largely flattened out," resulting in price target reductions across the majority of his tracked natural gas stocks.
Wells Fargo analyst Roger Read also upgraded CVX from Hold to Buy and also raised his price target from $115 to $140. Read cited solid cash flow generation plus the yield and cash returns to stockholders amid a relatively disciplined CAPEX, solid execution anticipated to continue, and a robust balance sheet.
RBC Capital analyst Biraj Borkhataria upgraded CVX from Hold to Buy and also raised his price target from $130 to $145. In a research note, the analyst told investors that he believes the company is in a better position to leverage the robust commodity cycle in the coming years owing to its business plans, which suggest stability in its portfolio relative to rivals. The analyst said that "certainty warrants a premium valuation," and the macro backdrop is highly supportive of the sector.
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