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

Goldman Sachs analyst Neil Mehta expressed views on Exxon Mobil Corp.’s (NYSE: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 (NYSE:XLE) and IShares U.S. Energy ETF (NYSE: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