Earnings Preview: Chevron (CVX) Q3 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Chevron despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Chevron is expected to report quarterly earnings of $1.66 per share, reflecting a year-over-year decrease of 33.9%. Revenues are projected to be $53.58 billion, an increase of 5.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 21.53% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Chevron matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. The stock currently holds a Zacks Rank of 4, complicating predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Chevron exceeded the expected earnings of $1.7 per share by delivering $1.77, resulting in a surprise of +4.12%. Over the past four quarters, the company has beaten consensus EPS estimates three times [13][14]. Market Reaction Factors - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment. Stocks may decline despite an earnings beat or rise despite a miss [15]. Investment Considerations - Chevron does not currently appear to be a strong candidate for an earnings beat, and investors should consider additional factors before making investment decisions [17].