Chemical producers Chevron (CVX) and Exxon Mobil (XOM) reported stronger-than-expected Q1 earnings on April 28, 2023, driven by elevated crude oil prices amid geopolitical tensions affecting global supply. Exxon posted a Q1 revenue of $85.13 billion, surpassing expectations of $81.49 billion, while Chevron’s revenue reached $48.6 billion, exceeding estimates of $47.37 billion.
Exxon’s adjusted net income rose over 15% year-over-year to $8.8 billion, while Chevron’s dropped 28% to $2.8 billion, largely due to a legal reserve charge and foreign-exchange losses. Despite these figures, Chevron’s adjusted earnings per share (EPS) of $1.41 significantly surpassed expectations of $0.92. In contrast, Exxon’s adjusted EPS of $1.16 beat forecasts of $1.07. Operating cash flow for Exxon was $8.7 billion compared to Chevron’s $2.5 billion, highlighting Exxon’s stronger cash generation.
Exxon returned $9.2 billion to shareholders through dividends and buybacks, outpacing Chevron’s $6 billion. Year-to-date, both stocks are up over 25%, with Exxon showing 150% growth over the last five years, compared to Chevron’s 76%. Both companies are trading at 13X forward earnings, aligning them closely with the sector average.
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