Earnings Preview: Exxon Mobil Corporation (XOM) Q4 2011
By:NewsyStocks   Monday, January 30, 2022 6:04 PM

Exxon Mobil Corporation (XOM) is scheduled to release its fourth quarter earnings on Tuesday, January 31. Analyst views ahead of earnings have slid considerably since the start of the year when consensus EPS was $2.13 to $1.98 per share.

Analyst consensus of $1.98 represents a year-over-year growth of 7 percent. Revenue this quarter is expected to touch $128 billion, an increase of 28 percent year-over-year.

Oil and gas production for the quarter is expected to grow 12 percent sequentially but still about 4 percent lower year-over-year.

Earnings this quarter should also get a boost to the tune of $1.75 billion or 20 cents per share due to the sale of the company's North Sea assets.

Third Quarter Results & Earnings History

Exxon Mobil reported third quarter earnings of $10.3 billion, up 41% year-over-year.

Upstream earnings were $8.4 billion, up $2.93 billion from 3Q. Higher realizations led to an increase of $3 billion on earnings. Downstream earnings of $1.57 billion were up $419 million year-over-year. Refining margins helped boost earnings by $1 billion and volume/mix effects spurred earnings by $110 million.

Chemical earnings were lower year-over-year.

Our Take

Following the company's 3Q release, Oppenheimer reiterated its Outperform rating and maintained its price target of $100.

In a pre-earnings report, Merrill Lynch issued a Buy rating to the stock with a PT of $104.00. It stated international gas realizations would be a key highlight of the quarter but that the market should brace

On average year-over-year EPS for oil majors is expected to be up around 56 percent but lower sequentially.  Exxon Mobil remains well positioned among peer with diversified operation across the globe. Refining margins will play spoilsport this quarter of oil major with US companies hit harder than their international counter parts. However the situation seems to be looking up heading into 1Q for oil refiners and Exxon should be on top of its game once things improve.