Key Stats for ExxonMobil Stock
- Price change for ExxonMobil stock in the last 6 months: 22%
- $XOM Stock Price as of Oct. 16: $179
- 52-Week High: $179
- $XOM Stock Price Target: $175
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
ExxonMobil (XOM) gave investors an early look at its Q3 on Friday. Higher refining margins could lift its downstream profit by $4.5 billion compared with the previous three months.
Refining margins have jumped because of the ongoing Iran war, which has restricted energy exports through the Strait of Hormuz.
Ukrainian attacks on Russian refineries have also cut supply. Higher fuel prices are a political risk for the Trump administration ahead of the November midterm elections.
BMO Capital Markets analyst Phillip Jungwirth said the filing points to adjusted net income for refining of $8.5 billion.
That would be more than double last quarter’s level.
Not everything points up. Upstream earnings could fall by $1.3 billion from Q2, and the average Brent price dropped about 5.6% over the period.
On the plus side, selling some upstream assets will add $700 million to earnings. Exxon also said the Iran war did not disrupt its volumes this quarter.
Q3 results are due on October 30.
See analysts’ growth forecasts and price targets for ExxonMobil stock (It’s free) >>>
What the Market Is Telling Us About ExxonMobil Stock
The market reaction to ExxonMobil stock was calm as investors seem to be waiting for the full report.
The refining story fits what management said on its Q2 call. CEO Darren Woods said available refining capacity is the lowest he has ever seen, outside of COVID.
He expects refining margins to stay very high. Energy Products has grown from about 9% to about 23% of business line earnings in five years.
The company also came into this quarter from a strong place.
Q2 earnings were $14.5 billion, and cash flow from operations was $23.6 billion. Exxon returned more than $9 billion to shareholders through dividends and buybacks.
President Trump said in August that Exxon and Chevron were making “too much money.”
Big refining profits could bring more political heat. Woods also criticized windfall taxes in Europe on the same call.
So ExxonMobil stock has strong refining profits on one side and softer oil prices on the other. The October 30 report should show how the pieces add up.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is ExxonMobil stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what XOM stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
