ExxonMobil is last
In this series, we’re ranking four global integrated energy companies based on their likely earnings growth YoY (year-over-year) in the third quarter. Previously, we discussed Chevron (CVX), Royal Dutch Shell (RDS.A), and BP’s (BP) earnings estimates. Chevron’s earnings are expected to grow 152% YoY in the third quarter—the highest among its peers. Shell and BP are expected to post 52% and 41% higher EPS growth YoY in the third quarter. In this part, we ‘ll discuss ExxonMobil’s (XOM) expected performance in the third quarter. First, we’ll recap ExxonMobil’s second-quarter earnings.
In the second quarter, ExxonMobil’s earnings missed Wall Street analysts’ earnings estimate. The company’s earnings rose from $3.35 billion in the second quarter of 2017 to $3.95 billion in the second quarter. The earnings rose due to higher upstream earnings YoY—partly offset by lower downstream and chemical earnings in the second quarter.
ExxonMobil’s third-quarter estimates
Wall Street analysts expect that ExxonMobil could post an EPS of $1.3 in the third quarter. The estimates are 29% higher than ExxonMobil’s adjusted EPS in the third quarter of 2017 and 36% higher than its adjusted EPS in the second quarter. ExxonMobil’s revenues are estimated to be ~$73.3 billion in the third quarter. The estimates are ~11% higher than the company’s revenues in the third quarter of 2017.
Higher oil prices could result in higher upstream earnings for ExxonMobil in the third quarter. WTI prices have risen from $52 per barrel in the third quarter of 2017 to $76 per barrel in the third quarter. However, downstream earnings could be weaker due to lower refining cracks in the industry. The USGC WTI 3-2-1, the benchmark crack, has fallen 15% YoY in the third quarter.
Next, we’ll discuss analysts’ rating for these integrated stocks before their third-quarter earnings.