From StockNews.com: Chevron Corporation (NYSE:CVX) early Friday posted much worse than expected fourth quarter earnings results, with both profit and revenue coming in below estimates.

The San Ramon, CA-based integrated oil giant reported Q4 EPS of just $0.22, which was a full $0.46 worse than the Wall Street consensus estimate of $0.68. Revenues rose 7.7% from last year to $31.5 billion, also falling short of analysts’ $32.96 billion view.

U.S. upstream operations saw a small profit of $121 million in the fourth quarter, a massive improvement over the unit’s $1.95 billion loss a year ago. CVX noted the increase was due to lower expenses and higher oil and gas prices.

Meanwhile, U.S. downstream operations were breakeven in Q4, down from a profit of $496 million last year. The decline in earnings there was a result of weaker margins and rising taxes.

The company commented via press release:

“Our 2016 earnings reflect the low oil and gas prices we saw during the year,” said Chairman and CEO John Watson. “We responded aggressively to those conditions, cutting capital and operating expenses by $14 billion. We are well positioned to improve earnings and be cash flow balanced in 2017 through continued tight spending and cost control and additional revenue from expected production growth. That confidence enabled us to increase the 2016 annual dividend payout for the 29th consecutive year.”

Chevron Corporation shares fell $2.99 (-2.57%) in premarket trading Friday. Year-to-date, CVX has declined -3.42%, versus a 2.65% rise in the benchmark S&P 500 index during the same period.

CVX currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 98 stocks in the Energy – Oil & Gas category.

This article is brought to you courtesy of StockNews.com.

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