Behind the Chevron Miss

Forex hurts Chevron—and others. I've noted two outlying events that are affecting earnings this season: commodity inflation, and foreign exchange.

A good example of the latter can be seen in Chevron's earnings today. They missed—notably. $1.87 was almost 30 cents off the consensus of $2.15. Of that, more than half the miss ($0.17) appears to be from foreign exchange. Much of the rest of the miss was for higher exploration expense (they wrote off a lot for dry holes, one analyst noted).

Importantly, their third quarter production INCREASED 1 percent, perhaps the main reason the stock is only down 1.5 percent.

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