At the time of publishing, the Exxon Mobil Corporation (NYSE: XOM) stock declared its earnings which were in red. The company reported quarterly results on 27 October. Just after the report, the price slumped over 2.20% in that session and CMP is at $105.39.
The Exxon stock price showed a big red candle opening on Friday, 27th October but the expectation was the price to maintain above the 200-day EMA. However, the stock price showed a continuous drawdown and slipped below the 200-day EMA, thus, losing a hefty percentage on that day.
Exxon Mobil Corporation’s primary function is the discovery, production, and sale of oil and gas products. The company is actively involved in the oil industry with three business segments. These regions are called upstream, downstream, and chemical regions.
Upstream, they search for and produce oil and natural gas. Downstream, petroleum products are processed and then sold. Finally, the chemical sector focuses on the production of petrochemical products. The company was founded in 1882 by John D. Rockefeller. Exxon Mobil Corporation is currently headquartered in Spring, Texas.
Ownership Breakdown
According to the financial website, the ownership breakdown consists of 60.7% of institutions’ holdings in the stock, the general public holds 39.2%, individual insiders have 0.1%, state or government holds 0.05%, and private companies hold 0.001%. The shareholders of the XOM stock have not been meaningfully diluted in the past year span.
Furthermore, the big two institutions hold the major ownership. First is Vanguard Group Inc. which is the top shareholder of Exxon stock, which owns 9.8% of the company. A second top shareholder is BlackRock Inc. which owns 6.86% of the company. Vanguard holds 41.8 Billion worth of XOM shares with a share count of 388,243,477 and the BlackRock holds 29.3 Billion worth of shares with a total share count of 271,990,742.
Who Oversees Company Management?
Darren Woods became the CEO of Exxon Mobil in January 2016 and he’s been at it for the last 7.75 years. The total payment package is $35.91 Million, which includes a 4.7% salary and a 95.3% bonus (company stocks and options included). He directly owns 0.005% of the company’s stock, which is worth $22.6 Million. The average length of service for management and board members is 4 years and 2.6 years respectively.
XOM Stock Financial Summary
Exxon reported revenue of $90.76 Billion in the latest reported quarter. It missed 2.84% as compared to the consensus estimate of $93.41 Billion, also representing a year-over-year change of -19.01 %.
For Exxon, the current quarter’s consensus revenue estimate of $93.41 Billion suggests a year-over-year change of -10.68%.
Furthermore, the reported EPS was $2.27 for the same period compared to $4.45 a year ago. This shows year-over-year change of -48.9%. In the current Q3 report, the reported EPS was knocked out by the surprise of -4.17%by the consensus estimate.
Now, Exxon is expected to post earnings of $2.28 per share for the last quarter of the year, showing a year-over-year change of -30.69%.
The current fiscal year’s consensus earnings estimate of $9.43 suggests a year-over-year change of -32.25%.
For the next fiscal year 2024, the consensus estimate for earnings of $9.64 suggests a change of +2.23% from what Exxon is expected to report in 2023.
For the current and next fiscal years, revenue estimates of $351.33 Billion and $363.98 Billion indicate changes of -17.51% and +3.60%, respectively.
XOM Stock Fundamental Health
Exxon is worth $207 Billion in total as per the total shareholder equity. It’s in some debt though, amounting to $41.5 Billion. This brings its debt-to-equity ratio to 20%, which highlights it has low debt compared to the equity.
Total assets and liabilities are balanced at $363.2 Billion and $156.3 Billion each. Exxon makes a lot of money every year at $61.5 Billion, and its return on EBIT is 74.6. They have a nice stash of cash sitting at around $29.5 Billion.
Digging Deep Into The Chart of XOM Stock
Exxon Mobil Corporation (NYSE: XOM) has been rising from $31.11 since October 2020 and various setbacks have hit the stock over the past 4 years but the stock has not wavered and held in an ascending parallel channel during the daily time frame.
A closer look at the chart showed that the stock performed very well, providing investors with a nearly quadrupling return on their investment by February 2023 when the stock first hit an all-time high of $120.
The stock also appears to have attempted to retest $120 resistance in April and September 2023, respectively, after hitting February highs. However, it appears that the resistance has become much stronger and the stock price has started to fall.
XOM stock’s financial results haven’t been as good as investors and analysts expected, with its last two quarterly reports posting losses. The stock price fell and the most recently announced results on October 27 were in red, showing a negative start to the Exxon stock chart.
A dip on the chart shows a likely new start of selling by investors on the XOM price chart. And on further look closely, it can be noticed that the big red candle on the day of the earnings report has already crossed the long-watched ascending parallel channel and could indicate a bearish trend in futures.
Therefore, if XOM share fails to hold its grip and continuously declines and breaches below $100 which is an important swing low and the round level, it may hit $90 or beyond as well.
On the contrary, if buyers boost more and the price starts to sustain, the XOM stock might surge strongly from the current level and surge higher. The possible targets would be between $110 and $120.
The current value of RSI is at 35.90 points. The 14 SMA is below the median line at 43.68 points which indicates that the XOM stock is bearish and signals weakness in the momentum of the stock price.
At the time of publication, the long-term 200 EMA was above the price, and the XOM price was also rejected and faced resistance in the form of the short-term 20 and 50 EMA.
Summary
The XOM stock recently gave its earnings report in red similar to its last earning report. This highlights that its financials are depleting and the investors are losing confidence and attempting to sell off their quantities from their portfolios.
As far as the price action is concerned, the journey was good until February 2023. After that, the stock was unable to make new highs. Despite several attempts, it failed to surpass it. Eventually, the price action led the stock into a bearish mode which was further confirmed by the technical tools as well.
Technical Levels
Support Levels: $100 and $90
Resistance Levels: $110 and $120
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/28/xom-stock-fails-to-break-hurdles-turns-bearish-after-q3-result/