Exxon signals strong Q4 results; Credit Suisse raises earnings outlook

https://seekingalpha.com/news/3784373-exxon-signals-strong-q4-results-credit-suisse-raises-earnings-outlook

Exxon Mobil (XOM +0.8%) edges higher in early trading after a new 8-K filing suggests a likely Q4 earnings beat, largely due to stronger oil and gas prices, when it reports on February 1.

The 8-K filing, which Credit Suisse analyst Manav Gupta calls "the barometer that measures the health of the energy sector," indicates higher oil and gas prices could have increased the company's Q4 GAAP earnings by as much as $1.9B compared with Q3.

Gupta calculates Exxon's indicators point to Q4 net income of ~$8.25B, or $1.93/share, well above Wall Street's $1.72 consensus and his own previous estimate of $1.64.

The analyst now forecasts Exxon's Q4 upstream earnings will rise by a third to $5.98B from $3.95B in Q3, downstream earnings will climb to $1.44B vs. $1.25B in Q3, and chemicals earnings will slip to $1.41B from $2.03B.

Based on the filing, Gupta also expects materially higher Q/Q upstream earnings from the other oil companies in his coverage: Chevron (CVX +0.1%), Suncor Energy (SU +1.2%), Cenovus Energy (CVE +0.7%), Imperial Oil (IMO +1.3%) and Canadian Natural Resources (CNQ +0.5%).

Exxon is "poised to generate strong free cash flow for years to come" and its valuation is very attractive, Leo Nelissen writes in a bullish new analysis posted on Seeking Alpha.

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8 replies (most recent on top)

@2dgb+1eAlHAvN
In the end, the real end which will come during the next big downturn, the execs will be all out of a job and the shareholders will get a few cents on a dollar.

You guys can all leave the company, XOM will still be raking in profits from elevated high oil prices in 2022. Investors will still continue to pour in. In the end, the execs and shareholders will win, and the losers will be the employees.

Any of the windfall to be shared with employees? Guess chance of a special dividend to the shareholders is greater. LOL

Whew.
I thought only stock buybacks and deutsch bank loans would pig the pipe.
I forgot about cartel manipulation.
I a silly fool.

As already said several times in similar threads before, this increase in profits is only due to the rise of crude and natural gas prices. It's like taking a massive injection of painkiller. The pain temporarily goes away, and the Dallas people can take a breathe, but the fundamental flaws of the company are still there.

Expect more croaking, including on this site, from our managers, saying how “the good times are back” or how “EM is now out of trouble”.
What we shouldn’t expect is the stock of EM rising more than the industry average. It might actually rise significantly less, as it happens to second-rate, severely mismanaged companies.

This company has no creativity. It has complete reliance on crude oil prices and status quo; the rest is pure gimmick for increased executive compensations.

Basically Chutiya (stupid) company hai!

What happens to oil price and earnings when OPEC+ decides to increase production volumes? How does that factor in analyst outlook?

Thread regarding ExxonMobil Corp. layoffs

Exxon signals strong Q4 results; Credit Suisse raises earnings outlook

8 replies (most recent on top)

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