Chevron Corp. (NYSE: CVX) is expected to report third quarter FY 2011 financial results on October 28, 2011. In the last four quarters, the company's reported EPS exceeded Wall Street's consensus estimates in quarters ended December 2010, March 2011 and June 2011 by margins of 1.20 percent, 3 percent, and 7.80 percent, respectively. However, for the quarter ended September 2010, the reported EPS missed Wall Street's estimate by a margin of 13 percent.
In fiscal 2011 Q1 and Q2, and fiscal 2010 Q4, the company's stock price gained in value after it reported quarterly results. However, in fiscal 20110 Q3, the stock price fell after it reported lower-than-expected results.
Recently, Williams Partners LP (NYSE: WPZ) signed multiple agreements with Chevron Corp. and Hess Corp. (NYSE: HES) to provide production handling, export pipeline, oil and gas gathering and gas processing services in the Tubular Bells field development located in the eastern deepwater Gulf of Mexico.
Recently the company's board of directors declared a quarterly dividend of $0.81 per share, payable December 12, 2011, to holders of common stock as shown by the transfer records of the corporation at the close of business on November 18, 2011. The amount represents a 3.8 percent increase in the company's quarterly dividend and the second dividend increase in 2011. Combined, the two actions represent a 12.5 percent annual increase in the company's quarterly dividend.
For the third quarter, the Wall Street consensus is $3.44 per share, up 84 percent from a year ago when the company reported earnings of $1.87 per share. Over the past three months, the consensus estimate has increased from $3.44 per share. Analysts are projecting earnings of $13.46 per share for FY 2011. Revenue for the year is expected to grow 29.60 percent to $256.87 billion, from $198.20 billion a year ago.
In the major integrated oil and gas industry, the company competes with BP Plc (NYSE: BP) and Exxon Mobil Corp. (NYSE: XOM). In the trailing 12-month period, Chevron reported net income of $23.01 billion, or $11.45 per share, on revenue of $216.90 billion. BP Plc reported earnings of $20.09 billion, or $6.28 per share, on revenue of $337.41 billion; and XOM reported net income of $37.93 billion, or $7.59 per share, on revenue of $392.72 billion.
During the third quarter, analysts at Standpoint Research upgraded the stock rating of Chevron to Accumulate from Hold. A majority of analysts have given a Buy rating on the stock with a price target of $121.32 a share. Based on the price target, the stock has a potential to increase in value by almost 12 percent.
