In this series, we’re ranking four integrated energy companies based on their estimated YoY (year-over-year) earnings growth. ExxonMobil (XOM) occupies the second-place spot.
In the previous article, we reviewed Chevron (CVX), which is expected to post a 183% YoY rise in EPS in the fourth quarter.
In the third quarter of 2018, ExxonMobil’s earnings surpassed Wall Street analysts’ earnings estimates. Its earnings also rose from $3.97 billion in the third quarter of 2017 to $6.24 billion in the third quarter due to higher YoY upstream and downstream earnings partly offset by lower chemical earnings in the period.
ExxonMobil’s fourth-quarter estimates
Wall Street analysts expect ExxonMobil to post EPS of $1.2 in the fourth quarter, 33% higher than its adjusted EPS in the fourth quarter of 2017 but 20% lower than its adjusted EPS in the third quarter of 2018. Also, ExxonMobil’s revenue is expected to be ~$81.7 billion in the quarter, ~23% higher than its revenue in the fourth quarter of 2017.
Better oil prices could result in higher upstream earnings for the company in the fourth quarter. Brent crude oil’s price fell from $61 per barrel in the fourth quarter of 2017 to $69 per barrel in the fourth quarter of 2018. Its downstream earnings could be lower due to the fall in refining cracks in the industry. The US Gulf Coast WTI 3-2-1, the benchmark crack, fell 19% YoY in the quarter.
Move on to the next article for a look at the next stock on the list, BP (BP).