Back to top

Image: Bigstock

Is a Beat in the Cards for ExxonMobil (XOM) in Q3 Earnings?

Read MoreHide Full Article

Exxon Mobil Corporation (XOM - Free Report) is set to report third-quarter 2022 results on Oct 28, before the opening bell.

In the last reported quarter, the integrated energy giant’s earnings per share of $4.14, excluding identified items, beat the Zacks Consensus Estimate of $3.80. Strong earnings were driven by higher realized commodity prices and solid refinery utilization, partially offset by increased ethane feed costs in North America.

In the trailing four quarters, ExxonMobil beat the Zacks Consensus Estimate for earnings thrice and missed the same once, delivering a surprise of 1.6%, on average. This is depicted in the graph below:

Exxon Mobil Corporation Price and EPS Surprise

 

Exxon Mobil Corporation Price and EPS Surprise

Exxon Mobil Corporation price-eps-surprise | Exxon Mobil Corporation Quote

Let’s delve into the factors that are anticipated to have influenced the energy giant’s performance in the September-end quarter.

Estimate Trend

The Zacks Consensus Estimate for ExxonMobil’s third-quarter earnings per share of $3.88 has witnessed eight upward revisions and no downward movement in the past 30 days. The consensus estimate suggests a year-over-year increase of 145.6%.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $115.2 billion indicates a 56.1% improvement from the year-ago reported figure.

Earnings Whispers

Our proven model conclusively predicts an earnings beat for ExxonMobil this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: ExxonMobil has an Earnings ESP of +1.39%. This is because the Most Accurate Estimate is currently pegged at earnings of $3.94 per share, whereas the Zacks Consensus Estimate is pinned at $3.88 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ExxonMobil currently carries a Zacks Rank #2.

Factors to Note

Oil prices were much higher in the September-end quarter of this year. Higher oil prices were favorable for ExxonMobil’s exploration and production activities as it has a strong presence in the prolific Permian Basin.

The Zacks Consensus Estimate for ExxonMobil’s daily production volumes is pegged at 3,774 million barrels of oil equivalent per day (MBoe/d), suggesting an improvement from 3,665 Mboe/d reported in the year-ago quarter. Our estimate for the company’s daily production volumes is pegged at 3,863.4 Mboe/d, also indicating an increase from the prior-year quarter’s reported figure. Higher production and price are likely to have aided XOM’s upstream operations.

ExxonMobil is expected to have reaped the rewards of a better macro environment in its downstream unit. The Zacks Consensus Estimate for ExxonMobil’s total refinery throughput volumes is pegged at 4,336 million barrels per day (Mbbls/d), suggesting an improvement from 4,051 Mbbls/d reported in the year-ago quarter. Our estimate for XOM’s total refinery throughput volumes is pegged at 4,336.3 Mboe/d, also indicating an increase from the prior-year quarter’s reported figure.

Other Stocks That Warrant a Look

Here are some other companies from the Energy space that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +0.29% and is a Zacks #3 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Devon is scheduled to release third-quarter results on Nov 1. The Zacks Consensus Estimate for DVN’s quarterly earnings is pegged at $2.13 per share, suggesting a massive increase from the prior-year reported figure.

Comstock Resources, Inc. (CRK - Free Report) has an Earnings ESP of +1.04% and currently flaunts a Zacks Rank of 1.

Comstock is scheduled to report third-quarter results on Nov 1. The Zacks Consensus Estimate for CRK’s earnings is pegged at $1.16 per share, suggesting a significant increase from the prior-year reported figure.

Chevron Corporation (CVX - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank #3.

Chevron is scheduled to release third-quarter earnings on Oct 28. The Zacks Consensus Estimate for CVX’s earnings is pegged at $5.02 per share, suggesting a massive improvement from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in