Exxon Mobil Reports Quarterly Earnings Above Expectations Despite Lower-Than-Expected Revenue

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Exxon ($NYSE:XOM)Mobil, the world’s largest publicly traded international oil and gas company, recently released its quarterly earnings report. This marks a slight decline in the company’s revenue compared to the same period last year. ExxonMobil is a multinational oil and gas corporation based in Texas, USA. The company is known for its production of oil, natural gas and petroleum products, as well as its research and development of alternative energy sources.

Stock Price

Exxon Mobil recently reported quarterly earnings that exceeded investors’ expectations, despite the company’s lower-than-anticipated revenues. On Friday, the stock opened at $117.2 and closed at $118.3, up 1.3% from the prior day closing price of $116.8. This increase was largely attributed to the company’s better-than-expected earnings, which ignited investor confidence in the company’s potential for future growth.

The results have restored some optimism in the stock, which had been declining for the past few weeks due to the lower-than-expected revenue. Despite this positive news, it remains to be seen how the company will fare in the long run in the face of low oil prices and other economic headwinds. 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

At GoodWhale, we believe Financials are key to understanding the fundamentals of any investment. That’s why we decided to do an analysis of EXXON MOBIL through our platform. Based on our Risk Rating, EXXON MOBIL is a low risk investment in terms of financial and business aspects. However, that does not mean that everything is perfect. In fact, GoodWhale has detected two risk warnings in the income sheet and balance sheet. We advise you to take a look at those warnings to get a full picture of the company before investing. If you are interested in taking a closer look at the risk warnings, please register with us and we’ll make sure you have everything you need to make an informed decision. 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, one of the world’s largest oil and gas companies, recently reported their second quarter financial results. Their non-GAAP earnings per share of $2.83 beat the market estimates by $0.23. Revenue of $86.56 billion, however, missed the market expectations by $3.51 billion. Investors should monitor further developments in the company’s financial performance and consider the potential impact of the pandemic on Exxon Mobil’s long-term growth prospects.