Exxon Mobil Corporation (XOM), with a massive market cap of $446.6 billion, is a leading integrated oil and gas company with diverse operations. The Spring, Texas-based company is expected to unveil its fiscal Q2 earnings results on Friday, Jul. 26.
Prior to the event, analysts anticipate XOM to report a profit of $2.23 per share, up nearly 15% from $1.94 per share in the year-ago quarter. The company has missed Wall Street's bottom-line estimates in three of the past four quarters while surpassing on one other occasion. The company reported an EPS of $2.06, missing the consensus EPS estimate by 5.9% in the most recent quarter due to weaker refining margins and lower natural gas prices.
For fiscal 2024, analysts expect XOM to report EPS of $8.92, down 6.3% from $9.52 in fiscal 2023. However, looking forward to fiscal 2025, EPS is expected to surge by a 12% margin, reaching $9.99.
On a YTD basis, XOM's shares have surged 15.2%, lagging behind the S&P 500 Index's ($SPX) 18.1% gain but outpacing the S&P 500 Energy Sector SPDR's (XLE) 8.8% increase over the same period.
Exxon Mobil's strategic focus on maximizing production from high-yield oil projects such as Guyana and the Permian basin, coupled with effective capital allocation and a strong balance sheet, highlights its resilience and strategic advantage in the global energy market. However, the stock declined 2.8% on Apr. 26 primarily after it missed analysts' expectations for Q1 profit, compounded by declines in earnings from oil and gas production and challenges in the refining segment due to higher maintenance costs and mark-to-market derivatives.
In addition, Exxon Mobil and CGI Inc. (GIB) announced the renewal of their partnership on Jun. 26, utilizing CGI's PayPartner360 solution to enhance payment and loyalty services across Europe and the Asia Pacific region for over 13,000 fuel retail sites and 10 million active users.
Analysts' consensus rating on Exxon Mobil stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 20 analysts covering the stock, opinions include 11 "Strong Buys" and nine "Holds." This consensus has remained fairly steady over the past three months. The average analyst price target for XOM is $138.74, suggesting a modest potential upside of 20.4% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
