Spring, Texas-based Exxon Mobil Corporation (XOM) operates as the largest American oil & gas company. It engages in the exploration and production of crude oil and natural gas in the U.S. and internationally. Valued at $446.1 billion by market cap, Exxon operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments.
The energy giant is set to release its first-quarter results before the markets open on Friday, May 2. Ahead of the event, analysts expect Exxon to deliver a non-GAAP profit of $1.69 per share, down nearly 18% from $2.06 per share reported in the year-ago quarter. While the company has missed Street’s bottom-line estimates once over the past four quarters, it has surpassed the projections on three other occasions.
For the full fiscal 2025, analysts project Exxon to deliver a non-GAAP EPS of $7.04, down 9.6% from $7.79 in fiscal 2024. However, in fiscal 2026, its earnings are expected to rebound 21.9% year-over-year to $8.58 per share.
XOM stock has plunged 15.3% over the past 52-week period, notably underperforming the S&P 500 Index’s ($SPX) 3.2% uptick during the same time frame. However, it has performed slightly better than the Energy Select Sector SPDR Fund’s (XLE) 19.3% drop over the past year.
Exxon Mobil’s stock prices dropped 2.5% after the release of its mixed Q4 results on Jan. 31. Due to an unfavorable pricing mix, the company’s overall topline decreased 1.1% year-over-year to $83.4 billion which missed the Street’s expectations of $87.2 billion by a notable margin. Meanwhile, its non-GAAP EPS plummeted 32.7% compared to the year-ago quarter to $1.67, however, the drop was anticipated and the company actually exceeded analysts’ consensus estimates by 7.7%.
On a more positive note, the company has showcased impressive expense management and saved $2.4 billion in 2024 by reducing its structural costs. Furthermore, it achieved an industry-leading return on capital employed of 12.7% during fiscal 2024.
Analysts remain optimistic about the stock’s longer-term prospects. The consensus view on XOM stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 25 analysts covering the stock, 16 recommend “Strong Buy,” eight suggest “Hold,” and one advocates a “Strong Sell” rating. Its mean price target of $127.75 represents a 23.9% premium to current price levels.
