Energy company Chevron (CVX) will release its Q2 financials on August 2. Analysts expect to report earnings of 2.93 per share, down about 9% from the prior-year quarter. However, analysts expect revenues of $48.68 billion, reflecting a 3.3% year-over-year increase, according to TipRanks’ data.
For the last reported Q1 quarter, CVX’s results were hit by lower refining margins and a drop in natural gas prices. As a result, earnings fell by 17.5% from the year-ago quarter, yet they surpassed analysts’ average estimate of $2.92.
Importantly, Chevron missed EPS estimates only once out of the last five quarters. It will be interesting to see if the company can maintain its winning streak and be able to report a Q2 beat, despite volatility in the energy sector.
Insights from the TipRanks Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool pictured below, bearish analysts predict that Chevron’s earnings will fall slightly below consensus due to upstream and downstream challenges and weaker refining margins. They also note that production has been impacted due to outages at Gorgon and Wheatstone facilities, preventing the company from taking advantage of rising international gas prices.
Meanwhile, the bullish analysts highlight Chevron’s exploration initiatives. They are also optimistic about the Hess acquisition, which is expected to be completed by this year, and believe the company is making efforts to enhance its portfolio.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 2.50% move in either direction.
Is CVX a Good Stock to Buy Now?
Overall, the Street has a Moderate Buy consensus rating on CVX stock, alongside an average price target of $185.09. However, analysts’ views on the stock are likely to change once the company reports its Q2 earnings tomorrow.
