1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
JulieYoung789
JulieYoung789
Articles (315) 

Chevron Reports Expected Quarter-Over-Quarter Earnings Improvement

July 14, 2014 | About:

Chevron Corporation released its Mid-Quarter Update for the second quarter of 2014 on July 10. The company will release second quarter earnings on Friday, August 1. Industry analysts estimate revenue of $57.37 billion for the second quarter with an earnings per share estimate of $2.76. The company reported in its Mid-Quarter Update that it expects earnings in the second quarter to be higher than the first quarter primarily due to a gain from asset sales. First quarter 2014 revenue was $51 billion, net earnings were $4.5 billion and EPS was $2.36.

In the Upstream exploratory segment Chevron reported average realizations up in the U.S. for Liquids and trailing for Natural Gas compared to the previous quarter. International realizations are slightly higher for Liquids despite Kazakhstan slowdowns and the closing of the LNG Angola facility which has also slowed production. International Natural Gas Realizations are trailing the first quarter total due to Kazakhstan and LNG Angola.

In the Downstream refinery segment quarterly volume production has been slowed by activity at the El Segundo refinery. International Refinery Input and U.S. Branded Mogas Sales are already higher than the first quarter 2014 while U.S. Refinery Input trails by 79 million barrels per day.

With increasing revenues and managed expenses the company’s earnings growth potential appears moderately high. It has a basic discounted cash flow value of $134.80. Analysts have a high target of $145 for the stock. On July 11 it ended the trading day at $128.47. Year-to-date the stock has gained 2.85% compared to the S&P 500 energy sector’s 11.16%. On a five-year basis the stock has gained 109.23% compared to the S&P 500 energy sector’s 120.28%.

Investors should be cautious of industry trends and business developments as the company operates in an unpredictable energy market. In the U.S. Energy Information Administration’s July Short-Term Energy Outlook it discussed some of the energy industry’s geographic challenges specifically noting conflicts in Iraq.

About the author:

JulieYoung789
Julie Young is a financial journalist with comprehensive experience in the financial services industry. She primarily writes about financial market news and economic trends. Julie holds a Master of Science degree in finance from Boston College and a Bachelor of Science degree in finance from the University of Arkansas.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


Praveen ChawlaROA>Div
DBrizanquality25Jul2016
dwin1000Test
greeycapPiotroski Std. 1
luckyno7REITS
vincentkflatprice2
vincentkflatprice
DANGORDONHIGH ROC AND EARN YIELD 7-24-1
rlalbersgood score screen
Wade WisnerScreenSummary 7/16

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK