Chevron (CVX) stock is down Friday after the integrated energy company beat revenue forecasts but came up short of profit expectations for its fourth quarter.
In the three months ending December 31, Chevron's revenue increased 10.7% year over year to $52.2 billion. Earnings per share (EPS) declined 17.9% from the year-ago period to $2.06.
"In 2024, we delivered record production, returned record cash to shareholders, and started up key growth projects," said Chevron CEO Mike Wirth in a statement. "We strengthened our portfolio and committed to reduce costs and maintain capital discipline, positioning us for significant free cash flow growth."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Chevron, which is seeking re-approval by the White House of a license that supports 200,000 barrels per day of production in Venezuela, is among the first U.S. companies to follow a Trump administration executive order renaming the Gulf of Mexico the "Gulf of America."
Chevron said worldwide net oil-equivalent production was up 7%, with U.S. output up 19%. "The company started up several key projects in the Gulf of America," Wirth said, "including the industry-first, high-pressure Anchor project."
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $46.8 billion and earnings of $2.11 per share, according to CNBC.
Chevron also announced a 4.9% increase to its quarterly dividend. Its new quarterly dividend rate is $1.71 per share, and the first payment will come on March 10 to shareholders of record as of February 14.
Chevron is one of the best dividend stocks to buy for dependable dividend growth and this latest increase marks the 38th consecutive year the integrated energy company has raised its annual dividend payment.
Is Chevron stock a buy, sell or hold?
Wall Street is bullish on the energy stock, which has underperformed the S&P 500 over the trailing 12 months with a total return of about 9% vs 25% for the index. That performance gap has narrowed over the last three months, though, with CVX up 7% since October 31 and the index up 5%.
According to S&P Global Market Intelligence, the average analyst target price for the Dow Jones stock is $177.19, representing implied upside of more than 16% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm BofA Securities is one of those outfits with a Buy rating on CVX, which remains one of the best long-term investment stocks to buy.
"We rate CVX Buy and it is our top pick into 2025 despite the oil macro on rising free cash flow from projects and cost cutting, and getting Hess certainty," wrote BofA Securities analyst Jean Ann Salisbury in a January 10 note.
Salisbury added that BofA expects Chevron's deal for Hess to close, "giving CVX 30% stake in Guyana filling its end of the decade production gap."
The analyst has 12-month price target of $180 on CVX, implying upside of approximately 20% to current levels.
Related Content
-
Dealmaking Drives HEICO Stock's 100,000% ReturnHEICO has been skillful with mergers and acquisitions over the years and this has resulted in a 100,000% share-price return.
-
Caregiving Is a Stealth Retirement Expense for Women: I Should KnowEldercare takes a toll on everyone, but women's careers tend to suffer more — with dire consequences over the long term.
-
Dealmaking Drives HEICO Stock's 100,000% Return
HEICO has been skillful with mergers and acquisitions over the years and this has resulted in a 100,000% share-price return.
-
The Golden Window: A Top Tax Strategy for the Right RetireesMaximize your retirement savings and minimize your tax burdens by taking advantage of the strategic 'Golden Window' before Social Security and RMDs begin.
-
Roth or Traditional? Seven Considerations for High EarnersRetirement savings and taxes are a minefield — and the higher your income, the more complicated the options. Use these tips to find your way forward.
-
The Social Security Fairness Act: Good News for Retirees?Millions will be affected by new rules that boost Social Security benefits. But if you qualify, there may be knock-on effects on your retirement cash flow.
-
Stock Market Today: Stocks Recover From Trump-Zelensky SlideReports of a combative meeting between the two leaders sent stocks temporarily lower Friday afternoon.
-
Want to Hire a Financial Planning Firm? Five Questions to AskThe key to finding a financial planner who will do great work for you and your family is knowing what to look for during your search.
-
Five Top Insurance Scams to Watch Out ForScammers are always looking to take advantage of unsuspecting people, and insurance issues are prime targets. Here's how to avoid falling victim.
-
Stock Market Today: Mixed Messages Muddle MarketsStocks cruised into pre-market action on encouraging news for the AI revolution but stumbled on yet another policy disturbance.
