Barclays (NYSE:BCS) lowered their earnings estimates on Chevron (NYSE:CVX), citing their downwardly revised guidance for the quarter and full year.
"We believe the stock will react negatively to the 3Q10 interim update (10/12/10), due to the likely downward revision of the consensus expectation, reflecting the large FX loss as well as other one-off items. CVX expects 3Q10 result to be negatively impacted by $400 million in FX, primarily in international upstream, $200 million negative non-recurring items in international upstream, as well as a derivative loss in downstream. However, operationally, the company ran 3Q10 well," said Barclays.
"In light of the expected lower 3Q10 result, we decrease our 3Q10 and 2010
EPS estimates to $1.94 and $9.20 per share, from $2.28 and $9.55 per share,
respectively. We also fine-tune our 2011 EPS estimate modestly to $10.50 from $10.55 per share."
Chevron closed Wednesday at $83.67, down $0.17, or 0.20 percent. Barclays has a price target of $110 on the energy giant, while maintaining an "Overweight" on them.
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