ExxonMobil’s 3Q17 Earnings Beat Estimates: Stock Rises



ExxonMobil’s 3Q17 performance

ExxonMobil (XOM) posted its 3Q17 results on October 27, 2017. Before we do an earnings review, let’s look briefly at XOM’s 3Q17 performance compared to the estimates.

In 3Q17, XOM’s revenues surpassed Wall Street estimates by 4.0%. Its 3Q17 reported EPS (earnings per share) was $0.93. Adjusting it for the impact of Hurricane Harvey, it was $0.97, which is 12.7% higher than the estimate of $0.86. XOM’s 3Q17 EPS was 54.0% higher YoY (year-over-year) than its 3Q16 EPS.

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ExxonMobil’s 3Q17 earnings

ExxonMobil’s (XOM) earnings rose from $2.7 billion in 3Q16 to $4.0 billion in 3Q17. The improvement was due to a rise in upstream earnings coupled with a rise in downstream earnings YoY in 3Q17. However, its chemical earnings fell marginally YoY in 3Q17.

Crude oil realizations rose in 3Q17 over 3Q16, leading to a rise in XOM’s upstream earnings. WTI (West Texas Intermediate) average price rose from $45 per barrel in 3Q16 to $48 per barrel in 3Q17. Its downstream earnings rose from $1.2 billion in 3Q16 to $1.5 billion in 3Q17 due to better margins. We’ll evaluate XOM’s segmental performance in the next part.

XOM’s peers also saw their earnings rise in 3Q17 over 3Q16. Chevron’s (CVX) 3Q17 adjusted EPS was 73.0% higher than in 3Q16. Royal Dutch Shell (RDS.A) and BP (BP) are expected to have 22.0% YoY and 70.0% YoY higher EPS in 3Q17. Petrobras (PBR) is also likely to see positive earnings in 3Q17 compared to a loss in 3Q16.

Nine-month performance

In the first nine months of 2017, ExxonMobil posted an 84.0% YoY rise in earnings to $11.3 billion. That was due to increases in upstream and downstream earnings, partially offset by a fall in chemical earnings YoY. Its EPS was $2.70 in the first nine months of 2017 compared to $1.50 in the first nine months of 2016.


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