Exxon's Earnings Amidst Oil Price Challenges Has Bright Spots, Says Analyst

Goldman Sachs analyst Neil Mehta expressed views on Exxon Mobil Corp.’s XOM signaling weak oil and gas prices to impact first-quarter FY24 results.

The company anticipated that fluctuations in gas prices would negatively influence its first-quarter upstream results by between $(0.6) billion and $(0.2) billion. 

The analyst wrote that the implied Upstream earnings came in above estimates at ~$6.0 billion at the mid-point vs. estimate at ~$5.6 billion.

Also, Mehta said the implied Downstream earnings came in above GS estimates at the mid-point at ~$2.5 billion vs the estimate at ~$2.1 billion.

Moreover, the implied Chemicals came in above estimates at the mid-point at ~$700 million vs. the estimate at ~$440 million, said the analyst.

Overall, the analyst said implied EPS for the quarter came at the mid-point at ~$2.15 vs. an estimate of $1.95, and FactSet consensus closer to $2.06.

The analyst estimated revenue of $341 billion in 2024, $348 billion in 2025, and $355 billion in 2026.

Investors can gain exposure to the stock via Energy Select Sector SPDR Fund XLE and IShares U.S. Energy ETF IYE.

Price Action: XOM shares are trading higher by 0.29% at $119.65 on the last check Thursday.

Photo: Del Henderson Jr. via Shutterstock