Key Takeaways

  • ExxonMobil nearly tripled EPS for Q3, blowing past analyst predictions by 86 cents a share.
  • Upstream segment—a key measure of ExxonMobil’s overall business—posted net income below analysts’ expectations.
  • The upstream segment for oil companies covers the exploration and development of oil and natural gas properties as well as the extraction and production of crude oil and natural gas. It benefits from higher oil prices.
ExxonMobil Earnings Results
MetricBeat/Miss/MatchReported ValueAnalysts’ Prediction
Earnings Per ShareBeat$4.45$3.59
Upstream Segment Net IncomeMiss$3.1B$3.2B

Source: Predictions based on analysts’ consensus from Visible Alpha

ExxonMobil (XOM) Financial Results: Analysis

ExxonMobil Corp. (XOM), the world’s second-largest oil and gas company by market value, said third-quarter profit almost tripled, topping analysts’ forecasts, though it failed to meet revenue growth expectations.

ExxonMobil’s earnings per share (EPS) jumped to $4.45, well above the $3.59 that analysts expected. While revenue rose 52% to $112.1 billion, that marked the slowest pace in six quarters.

ExxonMobil said record refining volumes and growth in its higher-margin petroleum and chemical products businesses helped drive earnings, in line with oil and gas companies that raked in record profit this year on significant natural gas business from Europe in the wake of Russia’s invasion of Ukraine. Energy prices spiked earlier in the year, prompting the Biden administration to release holdings from the U.S. Strategic Petroleum Reserves to bring down costs to consumers.

XOM Upstream Segment Net Income

ExxonMobil’s net income for its U.S. upstream segment more than tripled to $3.1 billion, slightly below expectations of $3.2 billion. Worldwide upstream net income also more than tripled, reaching $12.4 billion. Gas realizations increased on European supply concerns, but were partially offset by decreasing crude realizations. The company’s upstream segment, which is involved in the exploration, development, and production of oil and natural gas, is a key measure of its overall business.

XOM Outlook and Stock Performance

ExxonMobil did not provide updated forward guidance in its financial report on Oct. 28.

Shares of ExxonMobil were little changed as of 11 a.m. New York time. The company’s stock has climbed by 79% in the last year, compared with a 17% drop for the S&P 500 Index.

ExxonMobil’s next financial report (for Q4 FY 2022) is expected to be released on Jan. 31, 2023.

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