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Exxon stock needs an earnings boost to get back on track.
David McNew/Getty Images
Exxon
Mobil earnings are coming and the bar is so low that the stock could get a pop after the release Friday morning.
Exxon (ticker: XOM) is expected to report a profit of $2.03 a share on sales of $81.8 billion when it reports Friday morning, up from $4.14 a share and $115.7 billion in revenue during the same quarter in 2022. Earnings have been revised lower by 12% during the past month.
If that wasn’t enough to convince you that expectations were low for Exxon heading into its release, the stock has fallen 8.9% during the past three months, another sign that people aren’t expecting much, especially given the 11% rise in the S&P 500 and the Dow Jones Industrial Average’s 5.1% rise over the same period.
And for good reason: RBC analyst Biraj Borkhataria notes that Exxon released an 8K on July 13 in connection with its acquisition of
Denbury Resources
(DNR) that bring down expectations. He thinks that current earnings forecasts are meetable and expects buybacks and dividends to remain relatively unchanged.
Chevron
(CVX), which released earnings early after providing an update on management changes on Sunday, has gained 1.8% so far this week, to Exxon’s 2.2%.
Write to Ben Levisohn at [email protected]
Source: https://www.barrons.com/articles/exxon-earnings-stock-price-fd42b495?siteid=yhoof2&yptr=yahoo