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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
Are COVID Shots Still Covered By Medicare?Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in GoldInvesting in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market TodayThe Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary FormsStandard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams NowBeyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on RetirementWhile some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for RetirementSaving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial ExpertHealth care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
