PREVIEW: Chevron shares tumble, Q2 EPS, rev expected to increase
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** Shares in Chevron Corp CVX.N were down 5% on Thursday, on track for biggest one-day pct drop since October, in session ahead of quarterly report due early Friday
** Wall Street sees the oil company reporting adj EPS of $2.93 vs $3.08 in year-ago quarter on rev of ~$50.8 bln, which would be up 3.9% y/y, according the latest data from LSEG
** In last 8 quarters CVX beat Street EPS view 6 times with misses in Q3 2023, Q4 2022 while its rev beat estimates 6 times with misses in Q1 2024, Q2 2023
** In April CVX beat Q1 profit estimates as higher U.S. production volumes helped offset a hit from weak natural gas prices, fuel margins
** While the broader market was also down on Thursday CVX was under particular pressure due to the prospect of a lengthy new delay to its proposed purchase of another U.S. oil producer Hess HES.N which was down ~8%
** An arbitration panel organized to hear a challenge from CVX rival Exxon Mobil XOM.N against the $53 bln deal will not meet until May, pushing back any closing until 2H 2025. XOM is also due to report results Friday
** YTD shares in CVX up 2% vs a roughly ~8% gain for the S&P 500 energy index .SPNY and a ~7% increase for the Dow Industrial Average .DJI
** CVX options braced for a 2.3% swing for the shares, in either direction by Fri; over the last eight qtrs, on average, CVX shares moved 3.3% on the day the co reported results, per Trade Alert data
(Reporting By Sinéad Carew, Saqib Iqbal Ahmed)
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