Exxon Mobil Corporation (XOM)

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Earnings Preview: Exxon Mobil Corp. (NYSE: XOM)
By: 24/7 Wall St. | January 27, 2023

• Here are previews of five companies set to report results before Tuesday’s opening bell. Three of them are Dow Jones industrial average components.

Exxon Mobil

Shares of Exxon Mobil Corp. (NYSE: XOM) have risen by almost 60% over the past 12 months. The world’s five supermajor oil companies (Exxon, Chevron, BP, Shell and TotalEnergies) raked in an estimated total of $190 billion in profits last year. A large share of that profit is headed for investors through dividend hikes and share buybacks. Friday morning, Chevron announced a dividend increase and a new $75 billion buyback plan that represents more than 20% of the oil giant’s market cap. Will Exxon match that? Will the Biden administration do anything but scold oil companies for making outrageous profits at consumers’ expense? Stay tuned.

Of 29 analysts covering the stock, 12 rate the shares at Hold, nine have Strong Buy ratings and seven rate the shares at Buy. At a price of around $118.00 a share, the upside potential based on a median price target of $110.00 is 3.4%. At the high target of $140.00, the upside potential is 18.6%.

Fourth-quarter revenue is forecast at $60.21 billion, down 11.0% sequentially but up 6.2% year over year. Adjusted EPS are pegged at $3.29, down 26.1% sequentially but 60.5% higher year over year. For the full 2022 fiscal year, estimates call for EPS of $13.89, up 158.2%, on sales of $411.36 billion, up 44%.

Exxon shares trade at 8.5 times expected 2022 EPS, 10.8 times estimated 2023 earnings of $10.88 and 12.0 times estimated 2024 earnings of $9.82 per share. The stock’s 52-week range is $73.65 to $117.78, and the high was posted Thursday. Exxon pays an annual dividend of $3.64 (yield of 3.09%). Total shareholder return for the past 12 months was 62.1%.

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