Will Chevron’s (CVX) Next Earnings Report Beat the Estimates?
You are looking for a stock which has consistently beaten earnings estimates and could be in a position to continue that streak in its next quarterly report. Chevron (CVX), which is part of the Zacks Oil and Gas Integrated – Global industry, might be a good candidate.
This oil company’s earnings estimates have been surpassed in the past two reports. In the past two quarters, the company has exceeded estimates by an average of 13.35%.
Chevron reported earnings of $5.56 per stock in the most recent quarter, compared to the Zacks Consensus Estimated of $5.02 per shares, which was a surprise at 10.76%. The company had been expected to report earnings of $5.02 per stock, but it actually posted earnings of $5.82 per stock, which surprised 15.94%.
Surprises in Price and EPS
Chevron’s earnings history is a key factor in recent estimates moving higher. In fact, the Zacks Earnings ESP of the company is positive. This is a great indicator that the company has made an earnings beat, especially when it is combined with its Zacks Rank.
Our research shows that stocks with a combination of a positive Earnings ESP, a Zacks Rank (3 (Hold), or better) produce a positive surprise about 70% of times. This means that if 10 stocks have this combination, there could be seven stocks that surpass the consensus estimate.
The Zacks Earnings ESP compares most accurate estimates to the Zacks Consensus Estimate. For the quarter, the Most Accurate Estimate refers to a Zacks Consensus version that is related to changes. This means that analysts revising earnings estimates just before a release are updated with the latest information. This could make their estimates more accurate than what other contributors to the consensus have predicted.
Chevron currently has an EarningsESP of +1.32%, which suggests that analysts are bullish about its near-term earnings potential. This positive Earnings ESP combined with the stock’s Zacks Rank 3 (Hold) shows that there may be another win. The company is expected to release its next earnings report on January 27, 2023.
Investors should be aware that if the Earnings ESP is negative, this will decrease the predictive power of the metric. A stock’s earnings are not affected by a negative value.
While many companies beat the consensus EPS estimate, that does not necessarily mean their stock prices will rise. Some stocks might hold their ground, even if they miss the consensus estimate.
It is important to verify a company’s Earnings ESP prior to its quarterly release. This will increase your chances of success. Our Earnings ESP Filter will help you find the best stocks to purchase or sell before they report.
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Chevron Corporation (CVX) : Free Stock Analysis Report