Shares of Chevron Corporation (NYSE:CVX) fell by 1.4% in premarket trading today, following the release of its Q3 financial results. The oil giant reported a net income of $6.526 billion, significantly lower than last year's $11.231 billion. Adjusted earnings per share (EPS) stood at $3.05, falling short of the projected $3.70 estimate. This is in line with an InvestingPro Tip which notes that Chevron's revenue growth has been slowing down recently.
The company's revenue also took a hit, sliding to $51.9 billion due to declining commodity prices and reduced refined product sales margins. This comes against a backdrop of a 14% year-to-date drop in Chevron's stock, contrasting sharply with the S&P 500's rise of 7.8%. InvestingPro data shows that Chevron's stock has also been trading near its 52-week low, with a YTD price total return of -11.33%.
Despite the disappointing financial performance, Chevron reported a 4% increase in worldwide net oil-equivalent production. This uptick is attributed to the company's acquisition of PDC Energy (NASDAQ:PDCE) Inc. in August for $6.3 billion, which expanded its presence in the DJ and Permian Basins. Chevron, a prominent player in the Oil, Gas & Consumable Fuels industry according to InvestingPro Tips, operates with a moderate level of debt and its cash flows can sufficiently cover interest payments.
In addition to its Q3 results, Chevron announced an all-stock deal to acquire Hess Corp (NYSE:HES)., a transaction valued at $53 billion. The acquisition is expected to further consolidate Chevron's position in the global energy market, although its impact on the company's stock performance remains to be seen.
On a positive note, Chevron has consistently increased its earnings per share and has raised its dividend for 35 consecutive years, as per InvestingPro Tips. The company's dividend yield stands at 3.9% according to InvestingPro data. These factors, along with the company's perfect Piotroski Score of 9, suggest a strong financial health that might appeal to long-term investors.
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