On Friday, Scotiabank reiterated its Sector Perform rating on ExxonMobil (NYSE:XOM) shares with a steady price target of $129.00. The reiteration comes after the oil and gas giant provided its routine 8-K regulatory filing in anticipation of the upcoming earnings season. The update is expected to have a neutral effect on the company's share performance in the near term.
ExxonMobil's implied third-quarter 2024 results, as disclosed in the 8-K filing, are projected to be between $6.9 billion and $10.1 billion, translating to $1.56 to $2.28 per share. These figures are derived using an assumption of 4.45 billion shares outstanding. At the midpoint, the earnings are estimated to be around $8.5 billion, or $1.92 per share. This forecast is slightly down from the previous quarter's earnings of $9.2 billion, or $2.14 per share.
The current consensus among analysts for ExxonMobil's earnings per share (EPS) stands at $1.96, which aligns closely with the range provided by the company's 8-K filing. However, the guidance does not take into account certain factors such as the unplanned outage at the Joliet refinery and the full quarter of operations from Pioneer Natural Resources (NYSE:PXD).
Scotiabank's analysis suggests that, when considering all factors, including a gain of approximately $400 million due to timing impact, or $0.09 per share, ExxonMobil's earnings will likely be closer to $8.6 billion to $8.7 billion. This would place the EPS at an approximate midpoint of $1.94. The firm's assessment indicates that these additional elements will somewhat bolster the company's financial performance for the quarter.
In other recent news, ExxonMobil has maintained its Neutral rating according to Mizuho and Goldman Sachs (NYSE:GS), following the release of its third-quarter pre-earnings report. The company's earnings per share (EPS) range was reported to be between $1.56 and $2.24, aligning with market consensus. However, ExxonMobil's third-quarter performance was impacted by lower liquids pricing and reduced refining margins, contributing to an approximate $800 million decline compared to the second quarter of 2024.
ExxonMobil also reported a predicted drop in third-quarter upstream earnings, attributing this to changes in oil prices. This information, crucial to investors, was disclosed in a regulatory filing, demonstrating the volatile nature of the oil market.
In addition, ExxonMobil, along with other major energy firms, may need to borrow substantial amounts to sustain shareholder returns due to a recent decline in oil prices, as noted by analysts from RBC Capital Markets. These are recent developments that have shaped the company's financial landscape.
Finally, ExxonMobil, along with other top U.S. energy exploration companies, has reportedly paid more than $42 billion to foreign governments, a figure that significantly exceeds their payments within the United States, as per disclosures under a new Securities and Exchange Commission regulation.
InvestingPro Insights
ExxonMobil's recent 8-K filing and Scotiabank's analysis provide a snapshot of the company's expected performance, but additional data from InvestingPro offers a broader perspective. With a market capitalization of $554.69 billion, ExxonMobil remains a heavyweight in the energy sector. The company's P/E ratio of 14.94 suggests a relatively modest valuation compared to some growth stocks, which may be attractive to value investors.
InvestingPro Tips highlight ExxonMobil's strong dividend history, having raised its dividend for 41 consecutive years and maintained payments for 54 years. This consistency is particularly noteworthy in the cyclical energy sector. The current dividend yield of 3.1% could be appealing to income-focused investors, especially given the company's track record of dividend growth.
Despite the projected slight dip in quarterly earnings mentioned in the article, InvestingPro data shows that ExxonMobil has been profitable over the last twelve months, with a strong return over the past five years. The company's stock is trading near its 52-week high, which aligns with the positive outlook implied by Scotiabank's maintained price target.
For investors seeking a deeper dive into ExxonMobil's financials and prospects, InvestingPro offers 11 additional tips, providing a more comprehensive analysis of the company's position in the market.
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