NEW YORK (TheStreet) -- Chevron (CVX) - Get Report and Exxon Mobil (XOM) posted wildly different third quarter results before trading opened Friday, as they contend with a contracting oil and gas industry.
Chevron resoundingly beat analyst expectations. It reported earnings of 68 cents per share when analysts surveyed by FactSet were expecting a more modest result of 40 cents. Chevron slightly missed on revenue, reporting $29 billion when analysts were expecting $33 billion.
Exxon Mobil's earnings, meanwhile, barely beat analyst expectations. It reported earnings of 63 cents per diluted share, while FactSet-surveyed analysts were expecting 58 cents. Exxon Mobil's revenue missed as well. It reported $58.68 billion in revenue when analysts were expecting $60.41 billion.
Oppenheimer energy strategist Fadel Gheit thinks that the outlook for both companies is better going forward.
"The good news here is that I think the worst is over. I think we've already seen the lows in earnings [in the second quarter]," Gheit said Friday on BloombergTV's "Bloomberg Daybreak." "Going forward, these companies will probably have better earnings outlooks. However, the negative there is that they will still be in a cash flow deficit."
Cash flow for both companies won't turn around for either Exxon Mobil or Chevron until oil hits $60 a barrel, Gheit added.
Shares of Chevron were up in Friday morning trading, while shares of Exxon Mobil were down.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate CHEVRON CORP as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: CVX