Chevron (CVX) posted mixed fourth-quarter results early Friday, missing on earnings views while topping revenue estimates. The energy giant reported record profits and cash flow for 2022, on top of its earlier announcement launching a massive $75 billion share buyback and raising its dividend. Chevron stock edged lower Friday.
Chevron Stock: Earnings Estimates: Wall Street predicted EPS growing 69% to $4.33. Analysts targeted a 9% sales increase, to $52.68 billion.
Earnings: Chevron reported a 60% earnings jump, to $4.09 per share. Revenue grew 17% to $56.47 billion. Full-year earnings in 2022 ballooned 128% to $18.83 per share while sales increased 51% to $246.25 billion.
Cash flow from operations in 2022 totaled $49.6 billion, compared with $29.2 billion in 2021. Meanwhile, capital spending in 2022 was $12.3 billion, up from $8.6 billion in 2021.
Over the last three quarters, Chevron has averaged 200% earnings growth compared to the previous year. In Q3, Chevron topped earnings estimates, reporting EPS surging 88% to $5.56 per share. Sales increased 59% to $66.6 billion in the third quarter.
Chevron’s Buyback Program
On Wednesday, Chevron announced its $75 billion stock buyback program, which represents 20% of shares outstanding at current price levels. Chevron also boosted its quarterly dividend by 6%, to $1.51 a share. The $75 billion buyback program will begin on April 1, 2023, and does not have a fixed expiration date. Chevron’s previous stock buyback program of $25 billion began on Jan. 2019 and will end on March 31, 2023.