Exxon Mobil Set to Release Q4 Earnings Amid Mixed Analyst Expectations
Exxon Mobil Corporation (XOM), with a market value of $490.1 billion, stands as a powerhouse in the energy sector. The company boasts a varied portfolio that includes upstream, downstream, chemical, and specialty products. Alongside its strong dividend history, it has demonstrated a commitment to capital discipline. Situated in Spring, Texas, Exxon is gearing up to unveil its fiscal Q4 earnings results before the market opens on Friday, Jan. 31.
Profit Projections Show Decline
Analysts predict that Exxon will report a profit of $1.63 per share, reflecting a significant drop of 34.3% from $2.48 per share during the same period last year. Notably, Exxon has outperformed Wall Street’s earnings expectations in three out of its previous four quarters, with one miss. In the latest quarter, the company’s earnings slightly exceeded projections.
Forecasts for Fiscal 2024
Looking ahead to fiscal 2024, analysts estimate that Exxon’s EPS will be $7.79, a decrease of 18.2% from $9.52 in fiscal 2023.
Stock Performance Compared to Industry
XOM stock has increased by 11.6% in the past year. However, it has underperformed relative to the S&P 500 Index, which has risen 24.4%, and the Energy Select Sector SPDR Fund’s (XLE) near 12% return.
Mixed Market Reaction to Recent Earnings
Exxon reported better-than-expected Q3 EPS of $1.92, yet the company’s stock fell 1.6% on Nov. 1. This decline was prompted by total revenues of $90 billion, which fell short of estimates and represented a year-over-year drop. The Energy Products segment saw profits drop to $1.3 billion from $2.5 billion the previous year, attributed to lower refining margins and divestments of non-core assets. Additionally, lower prices for crude oil and natural gas negatively impacted market perception, with U.S. oil prices falling to $72.94 per barrel from $80.45 a year earlier.
Analysts Remain Cautiously Optimistic
The consensus rating on Exxon Mobil’s stock is “Moderate Buy.” Out of 24 analysts analyzing the company, there are 15 “Strong Buys,” eight “Holds,” and one “Strong Sell.” Currently, XOM is trading below the average analyst price target of $129.91.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please see the Barchart Disclosure Policy here.
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