Exxon Mobil Intrinsic Stock Value – EXXON MOBIL Reports Second Quarter FY2023 Earnings Results on July 28

🌥️Earnings Overview

EXXON MOBIL ($NYSE:XOM) reported their financial results for the quarter ending June 30 2023 for FY2023 on July 28 2023. Revenue totaled USD 80.8 billion, a decrease of 27.4% as compared to the prior year quarter. Net income for the period was USD 7.9 billion, a decrease of 55.9% year over year.

Stock Price

The day began with EXXON MOBIL stock opening at $105.1, but ended with the stock closing at $104.2, down by 1.2% from its prior closing price of 105.4. This news has been received with mixed reactions from investors and analysts as they look to see what strategies are being implemented by the company to help improve their financial performance. The report showed a decrease in revenue from the same period in FY2022, however, the company also reported an increase in profits due to cost cutting measures and improved efficiencies.

Additionally, the company was able to reduce its operating expenses and capital expenditure, which further contributed to its increased profitability. Despite the short-term decrease in revenue, EXXON MOBIL’s outlook remains positive as they continue to focus on long-term growth strategies to improve their financial performance. The company has invested heavily in research and development and continues to focus on expanding their portfolio of products and services. They have also made strong investments in clean energy technology and renewable energy sources, in order to address the global climate crisis. Overall, while the second-quarter earnings report from EXXON MOBIL has not been received with enthusiasm by investors, it does appear that the company is taking the necessary steps to ensure long-term sustainable growth and profitability. Only time will tell if these strategies are successful, but they do appear to be a move in the right direction. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Exxon Mobil. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Exxon Mobil. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Exxon Mobil. More…

Key Ratios Snapshot

Some of the financial key ratios for Exxon Mobil are shown below. More…

Analysis – Exxon Mobil Intrinsic Stock Value

At GoodWhale, we believe that analyzing the financials of a company is essential in order to make informed investment decisions. That’s why we’ve focused our resources on providing investors with the most up-to-date and comprehensive analysis of EXXON MOBIL. After carefully examining the data, our proprietary Valuation Line concluded that the fair value of EXXON MOBIL shares is around $102.2. At the time of writing, EXXON MOBIL’s stock is being traded at $104.2, which is slightly higher than the fair value of its shares. This indicates that EXXON MOBIL’s stock is currently slightly overvalued by 1.9%. However, this does not necessarily mean that investors shouldn’t purchase the stock. It simply means that the stock should be cautiously monitored in order to ensure that it remains at a fair price. More…

Peers

The oil and gas industry is a highly competitive sector. The largest oil companies in the world, Exxon Mobil Corp, Chevron Corp, BP PLC, and Hess Corp, are all vying for market share. These companies have different strengths and weaknesses, and each is trying to outmaneuver the others in order to gain an advantage.

– Chevron Corp ($NYSE:CVX)

Chevron is an American energy company with a market cap of 313.46B as of 2022. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including exploration, production, refining, marketing, and transportation. Chevron also has interests in chemicals, mining, and power generation. Chevron’s return on equity was 16.97% as of 2022.

– BP PLC ($LSE:BP.)

HSBC Holdings plc is a British multinational banking and financial services holding company headquartered in London, United Kingdom. It is the world’s fourth-largest bank by total assets and the largest in Europe with total assets of US$2.374 trillion. HSBC traces its origin to a hong in Hong Kong, and its present form was established in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company in 1991. The last surviving member of the Hong Kong banking conglomerate, The Hongkong and Shanghai Banking Corporation Limited, was renamed HSBC Holdings plc in May 1999.

As of March 2018, HSBC is organized into four business groups: Commercial Banking, Global Banking and Markets, Retail Banking and Wealth Management, and HSBC Holdings. HSBC has a dual primary listing on the Hong Kong Stock Exchange and London Stock Exchange, and is a constituent of the Hang Seng Index and the UK FTSE 100 Index. As of 6 July 2012, it had a market capitalization of £102.7 billion, the second-largest company listed on the London Stock Exchange, after Royal Dutch Shell. It has secondary listings on the New York Stock Exchange, Euronext Paris, and the Bermuda Stock Exchange.

In 2015, HSBC was investigated by the US Senate for allegedly facilitating money laundering for drug cartels and terrorist groups. The allegations date back to 2002 and HSBC’s involvement with Mexican drug lord Osiel Cárdenas Guillén. On 11 December 2015, HSBC agreed to pay US$1.256 billion to settle the charges.

– Hess Corp ($NYSE:HES)

Hess is a leading international independent energy company engaged in the exploration and production of crude oil and natural gas. Hess has a market cap of $37.9 billion as of 2022 and a return on equity of 29.47%. The company has a long history of success in the oil and gas industry, and its operations are primarily focused in the United States, the United Kingdom, Norway, Denmark, Malaysia, and Indonesia. Hess is committed to providing its shareholders with value through a combination of strong operating performance, disciplined capital management, and a commitment to sustainable development.

Summary

Exxon Mobil reported disappointing earnings results for the second quarter of FY2023. Total revenue was down 27.4% compared to the same period last year, while net income decreased 55.9%. This is concerning for investors, as it suggests that the company may be struggling to compete in the current market. Furthermore, the sharp drop in revenues and profits have caused Exxon Mobil’s stock price to plummet, exacerbating the problem.

Investors should review the company’s overall performance and consider further investing with caution. Exxon Mobil may be a good long-term investment, but a more detailed analysis of the company’s financials is recommended before making any decisions.