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Chevron (CVX) to Report Q1 Earnings: What's in the Offing?
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Chevron Corporation (CVX - Free Report) is set to release first-quarter 2018 results before the opening bell on Apr 27.
In the preceding three-month period, the company reported a negative earnings surprise of 42.52%. However, the bottom line improved significantly from the year-ago period on the back of rebounding commodity prices and production gains. The company also has an impressive earnings surprise history, surpassing estimates in three of the trailing four quarters, with an average positive earnings surprise of 7.41%.
The Zacks Consensus Estimate of $1.43 for the first quarter has been revised downward by 5 cents in the last seven days. However, the estimate of $1.43 reflects year-over-year growth of 1.4%. Further, analysts polled by Zacks expect revenues of $38,737. for the first quarter, up 16% from the year-ago quarter.
Factors at Play
Per EIA data, crude oil rose about 7.5% in the first three months of 2018 to end the quarter at $64.87 per barrel. In fact, the first quarter of the year saw the U.S. oil benchmark to attain its highest settlement since December 2014, despite a record high domestic production. Crude was supported by various catalysts including strong demand, and continued production curb from OPEC and its allies. The upstream segment of Shell is likely to benefit from higher crude price realizations.
The upstream segment of Chevron is also expected to realize the benefits of higher production volumes on the back of major capital projects including Gorgon, and core developments in the Gulf of Mexico and Permian Basin. The Zacks Consensus Estimate for first-quarter’s total international output is 2,143 thousand oil-equivalent barrels per day (MBOE/d), compared with $2,004 MBOE/d in the prior-year quarter. Further, the Zacks Consensus Estimate for the total quarterly U.S. output is also pegged higher at 693 MBOE/d, compared with the year-ago output of 672 MBOE/d. As such, income from the upstream segment for the to-be-reported quarter is estimated to be $2,593 million compared with $1,517 million in the prior-year quarter.
However, the downstream segment is likely to bear the brunt of lower refinery input per day. The Zacks Consensus Estimate for total refinery input is estimated to decline to $1,633 thousand barrels per day(Mbbl/d) in the quarter under review compared with $1,665 Mbbl/d in the year-ago quarter. As such, according to the Zacks Consensus Estimate, the segmental income is expected to deteriorate to $865 million versus $926 million recorded in the first quarter of 2017.
Earnings Whispers
Our proven model does not show that Chevron is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at $1.43.
Zacks Rank: Chevron carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s 0.00% ESP makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings
While earnings beat looks uncertain for Shell, one can consider firms from the energy space having the right combination of elements to beat estimates this quarter:
Apache Corporation (APA - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3. The upstream player is anticipated to release earnings on May 2.
NOW Inc. (DNOW - Free Report) has an Earnings ESP of +15.29% and carries a Zacks Rank #3. The energy equipment maker is expected to release earnings results on May 2.
Anadarko Petroleum Corporation has an Earnings ESP of +12.96% and a Zacks Rank #3. The energy explorer is anticipated to release earnings results on May 1.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now. Click here to see them >>
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Chevron (CVX) to Report Q1 Earnings: What's in the Offing?
Chevron Corporation (CVX - Free Report) is set to release first-quarter 2018 results before the opening bell on Apr 27.
In the preceding three-month period, the company reported a negative earnings surprise of 42.52%. However, the bottom line improved significantly from the year-ago period on the back of rebounding commodity prices and production gains. The company also has an impressive earnings surprise history, surpassing estimates in three of the trailing four quarters, with an average positive earnings surprise of 7.41%.
Chevron Corporation Price and EPS Surprise
Chevron Corporation Price and EPS Surprise | Chevron Corporation Quote
The Zacks Consensus Estimate of $1.43 for the first quarter has been revised downward by 5 cents in the last seven days. However, the estimate of $1.43 reflects year-over-year growth of 1.4%. Further, analysts polled by Zacks expect revenues of $38,737. for the first quarter, up 16% from the year-ago quarter.
Factors at Play
Per EIA data, crude oil rose about 7.5% in the first three months of 2018 to end the quarter at $64.87 per barrel. In fact, the first quarter of the year saw the U.S. oil benchmark to attain its highest settlement since December 2014, despite a record high domestic production. Crude was supported by various catalysts including strong demand, and continued production curb from OPEC and its allies. The upstream segment of Shell is likely to benefit from higher crude price realizations.
The upstream segment of Chevron is also expected to realize the benefits of higher production volumes on the back of major capital projects including Gorgon, and core developments in the Gulf of Mexico and Permian Basin. The Zacks Consensus Estimate for first-quarter’s total international output is 2,143 thousand oil-equivalent barrels per day (MBOE/d), compared with $2,004 MBOE/d in the prior-year quarter. Further, the Zacks Consensus Estimate for the total quarterly U.S. output is also pegged higher at 693 MBOE/d, compared with the year-ago output of 672 MBOE/d. As such, income from the upstream segment for the to-be-reported quarter is estimated to be $2,593 million compared with $1,517 million in the prior-year quarter.
However, the downstream segment is likely to bear the brunt of lower refinery input per day. The Zacks Consensus Estimate for total refinery input is estimated to decline to $1,633 thousand barrels per day(Mbbl/d) in the quarter under review compared with $1,665 Mbbl/d in the year-ago quarter. As such, according to the Zacks Consensus Estimate, the segmental income is expected to deteriorate to $865 million versus $926 million recorded in the first quarter of 2017.
Earnings Whispers
Our proven model does not show that Chevron is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at $1.43.
Zacks Rank: Chevron carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s 0.00% ESP makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings
While earnings beat looks uncertain for Shell, one can consider firms from the energy space having the right combination of elements to beat estimates this quarter:
Apache Corporation (APA - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3. The upstream player is anticipated to release earnings on May 2.
NOW Inc. (DNOW - Free Report) has an Earnings ESP of +15.29% and carries a Zacks Rank #3. The energy equipment maker is expected to release earnings results on May 2.
Anadarko Petroleum Corporation has an Earnings ESP of +12.96% and a Zacks Rank #3. The energy explorer is anticipated to release earnings results on May 1.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>