What to Expect From Exxon Mobil's Q3 2024 Earnings Report

Barchart · 10/15 04:19

Spring, Texas-based Exxon Mobil Corporation (XOM) explores and produces crude oil and natural gas. With a market cap of $487.4 billion, the company provides exploration and production integrated fuels, lubricants, chemicals, and refined products for automotive, trucking, aviation, and shipping industry to reduce greenhouse gas emissions. The oil giant is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Friday, Nov. 1.

Ahead of the event, analysts expect XOM to report a profit of $2 per share on a diluted basis, down 11.9% from $2.27 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.

For the full year, analysts expect XOM to report EPS of $8.11, down 14.8% from $9.52 in fiscal 2023. However, its EPS is expected to rise 6.4% year over year to $8.63 in fiscal 2025.

XOM stock has outperformed the S&P 500’s ($SPX) 22.9% gains on a YTD basis, with shares up 24.1% during this period. Similarly, it outperformed the Energy Select Sector SPDR Fund’s (XLE) 10.7% gains over the same time frame.

XOM's strong performance is driven by record rig productivity in the Permian Basin and strategic proximity to Gulf Coast refineries and export terminals. The company has doubled its production volume since 2019 and continues to invest in efficient assets to boost output and profitability. Recent acquisitions, such as the purchase of Pioneer Natural Resources, demonstrate XOM's commitment to expanding its presence in key regions. With a solid pipeline of profitable projects in the Permian Basin and offshore Guyana, XOM is well-positioned for sustained growth in the upcoming years.

On Aug. 2, XOM reported its Q2 results and its shares closed down marginally. Its EPS of $2.14, beat the Wall Street forecasts of $2.01. Its revenue was $93.1 billion, topping consensus estimates of $91 billion.

Analysts’ consensus opinion on XOM stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 13 advise a “Strong Buy” rating, eight give a “Hold” rating, and one recommends a “Strong Sell.” XOM’s average analyst price target is $130.09, indicating a potential upside of 4.8% from the current levels.

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On the date of publication, Neha Panjwani 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.