Oil giant ExxonMobil (NYSE:XOM) ticked lower in pre-market trading even as the company reported better-than-expected earnings in the fourth quarter. ExxonMobil reported adjusted fourth-quarter earnings of $2.48 per share compared to $3.40 in the same period last year. Still, this was above consensus estimates of $2.20 per share. The firm’s profits took a hit in the fourth quarter due to a $2 billion impairment charge in California as regulatory issues halted production and distribution.
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The company generated revenues of $84.3 billion in the fourth quarter, a decline of 11.6% year-over-year that missed Street estimates of $90 billion.
Exxon’s upstream segment saw its earnings decline to $4.1 billion, down 49% year-over-year. Furthermore, oil production in the fourth quarter was at 3.73 million oil-equivalent barrels per day (boed) in 2023, an increase of 136,000 boed due to the rise in oil production in the Permian Basin and Guyana.
In addition, Exxon declared a dividend for the first quarter of $0.95 per share, payable on March 11 to shareholders of record on February 14. The company returned $32.4 billion to shareholders in FY23 through $14.9 billion in dividends and $17.4 billion in stock buybacks.
Is XOM a Buy or Sell?
Analysts remain cautiously optimistic about XOM stock with a Moderate Buy consensus rating based on 10 Buys and six Holds. XOM stock has declined by more than 4% over the past year, and the average XOM price target of $127.93 implies an upside potential of 24.9% at current levels.
