Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Exxon Mobil Down On Preview Of Weaker Q3, But Sell-Side Says Warning ‘Relatively Benign’

Courtesy of Benzinga

Exxon Mobil Down On Preview Of Weaker Q3, But Sell-Side Says Warning 'Relatively Benign'

An Exxon Mobil Corporation (NYSE: XOM) securities filing that previews disappointing profits in its upcoming third-quarter report thanks to lower oil and gas prices pushed the stock down on Wednesday.

ExxonMobil’s 8-K filing gave a preliminary hint about third-quarter results, and said the decline in commodity prices could hurt results when it reports Nov. 1.

Sell-side analysts were unmoved to change their stances on the stock, though, with at least one seeking to reassure investors that the commodity price issues that will affect the print don’t reflect major underlying issues.

The Analysts

UBS analyst Jon Rigby kept a Neutral rating and $73 target price on the stock.

Mizuho’s Paul Sankey reiterated a Neutral rating and $79 target price.

Bank of America analyst Doug Leggate reiterated a Buy rating and $100 price target.

The Theses

Analysts did cut estimates for the third quarter, with Sankey dropping his earnings estimate from $1.04 to 65 cents.

An earnings positive reflecting recovery from maintenance downtime will be offset by the lower oil prices, Sankey said, leaving EPS in line with the disappointing second-quarter report. Chemical margins also remain weak, he wrote in a note.

“The implied lower results versus consensus suggest that XOM is still lagging market expectations in restoring earnings/cashflows,” added Rigby.

Leggate also adjusted his estimate downward, from 87 cents to 69 cents, but noted some of that is due to a change to mark-to-market accounting.

Relatively Benign

Leggate also sought to downplay the overall effect of the disclosure, however.

“On balance what amounts to a partial preview of XOM’s 3Q19 earnings looks relatively benign and largely a consequence of commodity changes with no material operating issues to change the go forward investment case,” Leggate wrote in a note.

Price Action

Investors were reacting negatively on Wednesday, pushing the stock down 2.35% to $67.30.

Related Links:

8 Energy Stocks Moving In Thursday’s Pre-Market Session

No Zip: Energy Sector Q3 Seen Weak Despite Attack On Oil Supplies

Photo credit: Ildar Sagdejev, Wikimedia

Latest Ratings for XOM

Date Firm Action From To
Aug 2019 Maintains Neutral
Aug 2019 Initiates Coverage On Market Perform
Aug 2019 Initiates Coverage On Equal-Weight

View More Analyst Ratings for XOM


View the Latest Analyst Ratings

Posted-In: Bank of America Doug LeggateAnalyst Color News Guidance Reiteration Top Stories Analyst Ratings Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!