Key Stats for ExxonMobil Stock
- Price change for ExxonMobil stock in the last 1 month: 14%
- $XOM Stock Price as of Jul. 31: $155
- 52-Week High: $176
- $XOM Stock Price Target: $167
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What Happened?
ExxonMobil (XOM) stock fell slightly on Friday after the energy giant’s earnings per share came in slightly below Wall Street’s target.
Adjusted earnings landed at $3.48 per share, missing the $3.58 analysts expected by just 10 cents. That small miss overshadowed some genuinely strong numbers elsewhere in the report.
Revenue came in at $116 billion, blowing past the $97.7 billion estimate. Net income more than doubled to $14.5 billion, up from $7.1 billion in the same quarter last year.
So why did ExxonMobil stock drop on a quarter with such strong top-line growth? CEO Darren Woods explained that the earnings miss came specifically from the refining business.
Massive disruption in global crude and product markets made it hard to accurately forecast pricing this quarter, and that unpredictability is what caused the shortfall versus estimates.
Despite that miss, refining actually turned in a big turnaround story. The segment posted $5.5 billion in earnings, a sharp reversal from a $1.3 billion loss in Q1, and well above the $1.4 billion it earned in the same quarter last year. Strong Gulf Coast refinery utilization and record diesel production drove that rebound.
On the earnings call, management pointed out that U.S. Gulf Coast refineries ran above 95% reliability during the quarter, and the Energy Products segment has grown from just 9% of business line earnings five years ago to 23% today.
Production was another bright spot. Excluding Middle East disruptions, ExxonMobil’s upstream business delivered its highest production volumes in more than two decades.
The Permian Basin hit a new production record of more than 1.8 million oil-equivalent barrels per day. Guyana also continued its strong run, producing about 900,000 barrels per day gross, with a fifth production vessel on track to start up by year-end.
Upstream exploration and production profits came in at $7.9 billion, up from $5.4 billion a year earlier.
The backdrop here matters too. Crude oil prices averaged $92.45 per barrel during the quarter, up 27% from Q1, largely due to ongoing conflict in the Middle East disrupting global oil supply.
Management said the company lost roughly 10% of its upstream production due to that conflict but still delivered what it called industry-leading results despite the disruption.
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What the Market Is Telling Us About ExxonMobil Stock
A 10-cent earnings miss isn’t usually enough to move a stock much on its own, especially alongside a massive revenue beat and doubled profits.
But ExxonMobil stock’s drop suggests investors are paying close attention to the specific reason behind the miss: unpredictable refining margins in a historically disrupted market.
The bigger picture here still looks strong, with record production, a rebounding refining business, and management projecting continued robust refining margins ahead given how constrained global capacity remains.
Investors will likely be watching whether ExxonMobil stock can better forecast and capture value from this volatile pricing environment in the quarters ahead.
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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!
