Exxon's $8.6 billion profit beats as volume offsets price weakness By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 01 2024
0mins
Source: Investing.com
Exxon's Third Quarter Performance: Exxon Mobil reported a profit of $8.61 billion for the third quarter, slightly down from $9.07 billion year-over-year, but exceeded Wall Street's expectations due to increased oil and gas production following its acquisition of Pioneer Natural Resources.
Challenges in the Oil Industry: Despite strong production records, Exxon's earnings were impacted by weak refining margins and a significant decline in profits from gasoline and diesel, highlighting ongoing challenges within the oil industry amid fluctuating demand and prices.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOM is 132.17 USD with a low forecast of 114.00 USD and a high forecast of 158.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 146.080
Low
114.00
Averages
132.17
High
158.00
Current: 146.080
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Chevron's Production Potential: Chevron anticipates a 50% increase in its production in Venezuela over the next two years, providing the company with an opportunity to be an early beneficiary in the country's energy revival, although the market remains fraught with uncertainties.
- U.S. Policy Shift: The Trump administration's policy changes towards Venezuela may assert control through economic means, with U.S. approval for buyers being crucial, which could influence Chevron's operational strategies and market entry.
- Investor Focus: While the political developments in Venezuela are noteworthy, Chevron's diversified business model suggests that investors should not rely solely on the country's energy recovery, but rather consider broader market dynamics and oil price volatility.
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- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
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- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
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- Major Investment Projects: The Socrates project in Ohio is set to come online in the second half of this year, generating 440 megawatts of power, with Meta Platforms signing a purchase agreement, highlighting its strategic importance in meeting data center power demands.
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