Oil Stocks in Spotlight Friday: Chevron, ExxonMobil, BP Could Show Impact of Higher Gas Prices
Three of the largest oil companies are all set to report third-quarter financial results Friday before market open.
Here’s a look at what analysts expect from the companies and what higher gas prices mean.
Q3 Earnings Estimates
Estimates for the three oil companies are significantly higher than in the year-ago period for several metrics, according to data from Benzinga Pro.
The three oil companies reporting Friday before market open are:
Here are the current analyst estimates for the three companies.
BP
- EPS: estimate $2.62 per share vs. 85 cents per share last year
- Revenue: $68.09 billion estimate vs. $48.42 billion last year
- The company has beaten analyst estimates for revenue in three straight quarters and in five of the last 10 quarters overall.
ExxonMobil
- EPS: $4.08 estimate vs. $1.88 last year
- Revenue: $103.47 billion estimate vs. $85.29 billion last year
- The company has beaten analyst estimates for earnings per share in eight of the last 10 quarters, but missed second-quarter estimates. The company has beaten analyst estimates for revenue in six of the last 10 quarters, including three straight.
Chevron
- EPS: $4.88 estimate vs. $1.85 last year
- Revenue: $61.11 billion estimate vs. $49.73 billion last year
- The company has beaten analyst estimates for earnings per share in seven of the last 10 quarters, including in five straight quarters. The company has beaten analyst estimates for revenue in seven of the last 10 quarters, including the most recent second quarter.
Higher Gas Prices Put Stocks in Spotlight
Higher gas prices across the country have put oil stocks in the spotlight, as they could mean increased revenue and earnings for the companies.
This may have been noticeable last quarter, when BP reported earnings of $2.22 per share, up from 90 cents a year earlier, along with its highest revenue quarter in years.
For all three companies, earnings estimates are more than 100% higher than in last year’s third quarter, with revenue estimates also significantly higher.
While oil prices may not be at record highs, they are significantly higher than in recent years, and heightened global demand is supporting better margins.
President Donald Trump recently bragged that the higher gas prices are leading to record profits and he may have been talking about oil stocks.
With consumers hurting at the pump, oil stocks could become the villain, even though most are just doing what they’ve always done, but now getting paid more for their output.
Record Stock Prices
Here are the current year-to-date stock gains for the three stocks:
- BP: +40.2%
- XOM: +49.0%
- CVX: +48.2%
All three are significantly outperforming the 12.5% year-to-date gain for the S&P 500.
Chevron and ExxonMobil head into the earnings report with shares trading within about 2% of all-time highs. BP stock trades at its highest level since 2014.
Strong reports could push shares even higher, though higher estimates may already be baked into the price, unlike in recent quarters.
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