Oil giant Chevron posted third quarter earnings before the bell on Friday, beating estimates on lower production and demonstrating the incredible profit-generating power of large caps in the energy sector.
Chevron’s net income hit $7.83 billion in the third quarter, more than doubling the $3.8 billion posted in Q3 2010. In a per share basis, the San Ramon, California-based company earned $3.92, beating Wall Street’s consensus estimate of $3.47 per share easily.
Revenue surged 29.6% to $64.43 billion but failed to beat estimates of $67.91 billion. While analysts were looking for the company to deliver on sales, Chevron, like Exxon, BP, and other big names in the sector, capitalized on higher prices and widening margins.