On April 27, fuel giant Chevron (NYSE:CVX) released first-quarter earnings for the period ended March 31.
- Favorable foreign exchange rates, a lower tax rate, and a one-time gain from a refinery sale resulted in an 18% surge in earnings.
- EPS growth outpaced net income growth thanks to share buybacks.
- While lower oil and gas prices curtailed revenue, strong demand has helped to maintain healthy margins.
- Escalating capital expenditures are being allocated to the development of new oil and gas fields.
- Chevron leads its competitors with four stars in the Motley Fool CAPS community. Its energy competitors BP (NYSE:BP) and ExxonMobil (NYSE:XOM) lag behind with three.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Sales |
$48,227.0 |
$54,624.0 |
(11.7%) |
|
Net Profit |
$4,715.0 |
$3,996.0 |
18.0% |
|
EPS |
$2.18 |
$1.80 |
21.1% |
|
Diluted Shares |
2,157.9 |
2,223.8 |
(3.0%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
31.2% |
26.3% |
4.9 |
|
Operating Margin |
15.8% |
14.2% |
1.6 |
|
Net Margin |
9.8% |
7.3% |
2.5 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$12,703 |
$11,764 |
8.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Capital Expenditures |
$4,055 |
$3,048 |
33.0% |
Free cash flow is a Fool's best friend.
Related Foolishness:
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