Earnings Preview: Chevron Reports Q4 Results Friday

| About: Chevron Corporation (CVX)

Chevron Corporation (NYSE:CVX) is expected to report earnings for last fiscal quarter before the opening bell on January 27, 2012. Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The company was founded in 1879 and is based in San Ramon, California.

52 Week High: $110.99
52 Week Low: $86.68
Book Value: $60.70
Float Short: 1.12%

On average, 15 analysts are expecting a drop of $-1.00 in earnings per share compared to last quarter's results of $3.92. A beat of $2.92 per share, will top the estimated per share earnings. Analyst estimates range between $2.62 and $3.6 per share.

The average price of oil Chevron reported on January 11, 2012 distributed into the market moved up from $79.56 in the fourth quarter of 2011, to $106.41 in the first two months in the reporting quarter.

Chevron is currently fighting an $18 billion dollar verdict from Ecuador for pollution in relation to Texaco from about 10 years ago. While the verdict is huge, I would expect it to drag on for a while and get reduced in the process. Expect Chevron to have to cut a check at some point though. Not surprisingly, the stock chart looks much like the charts for oil futures. Chevron pays a nice 3% dividend and is trading above the 200 day moving average which is technically bullish.

In the last month, the stock has decreased in price -0.46%, and changing from last year at this time 14.11%.
When comparing to the S&P 500, the year to date difference is -3.89%.

Revenue year-over-year has increased to $199.29 billion for 2010 vs. $168.32 billion for 2009. The bottom line has rising earnings year-over-year of $19.02 billion for 2010 vs. $10.48 billion for 2009. The company's earnings before interest and taxes are rising with an EBIT year-over-year of $26.47 billion for 2010 vs. $15.24 billion for 2009. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line, especially with refineries putting pressure on the bottom line.

Here is a look at the fiscal year revenue.

Here is the last few quarters to get an idea how well they perform compared to estimates
Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for CVX

The number of days to cover short interest based on average daily trading volume for CVX

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I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.