Oil and gas giant Exxon Mobil (XOM) will release its fiscal Q3 financials on November 1. Wall Street analysts expect the company to report earnings of $1.18 per share, representing a 17% decrease year-over-year. In contrast, revenues are expected to grow by 5% from the year-ago quarter to $93.98 billion, according to data from the TipRanks Forecast page.
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It should be noted that with energy prices declining, the company’s bottom line is under pressure. A recent filing from the oil major indicates that lower oil prices have likely impacted third-quarter upstream earnings, potentially reducing profits by $600 million to $1 billion.
Interestingly, Exxon missed EPS estimates in three of its last five quarterly earnings due to the challenges posed by a volatile energy market.
Insights from TipRanks’ Bulls & Bears Tool
The uncertainty in the energy market and declining oil prices could act as dampeners in Q3. Also, according to TipRanks’ Bulls Say, Bears Say tool, bears pointed out that XOM face significant macroeconomic risks, as its earnings are heavily influenced by the price volatility of crude oil, natural gas, and other refinery products.
However, bullish analysts believe that XOM’s recent acquisition of Pioneer Natural Resources should boost XOM’s worldwide production by 2026. They are also encouraged by Exxon’s strong shareholder returns, with an annual target of around $37 billion through dividends and buybacks, offering an appealing 7% total yield.
Now said that, it would be interesting to see if Exxon is able to report Q3 beat on both top and bottom line fronts.
Options Traders Anticipate a 7.38% Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.38% move in either direction.
Is Exxon Mobil Stock a Buy or Sell?
Turning to Wall Street, ExxonMobil stock has a Strong Buy consensus rating. Out of the 16 analysts covering the stock, 11 have a Buy recommendation and five have a Hold recommendation. Furthermore, at $137.13, the average XOM price target implies 17.52% upside potential. XOM’s stock has gained by nearly 13% over the past year.
