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ExxonMobil’s Q1 Earnings Fall Short of Wall Street Estimates

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ExxonMobil’s first-quarter performance versus estimates

ExxonMobil (XOM) posted its first-quarter results on April 26, 2019. The company’s revenues came in at $63.6 billion, which missed Wall Street estimates by ~2%. Also, the company’s first-quarter EPS stood at $0.55, missing Wall Street analysts’ estimated EPS of $0.70 by about ~21%. Plus, ExxonMobil’s Q1 2019 EPS stood 50% lower than its EPS in Q1 2018.

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ExxonMobil’s earnings review

ExxonMobil’s (XOM) earnings fell from $4.7 billion in Q1 2018 to $2.4 billion in Q1 2019. The fall in earnings was due to an across-the-board fall in segmental earnings. ExxonMobil’s Upstream, Downstream, and Chemical earnings fell year-over-year in Q1 2019.

ExxonMobil’s upstream earnings fell by 18% YoY to $2.9 billion in Q1 2019, which was due to lower realizations. However, earnings were supported by better volumes. ExxonMobil’s total hydrocarbon production rose by 2.4% YoY to 3.98 million barrels of oil equivalent per day in Q1 2019. This rise was led mainly by higher liquids output in the US.

ExxonMobil’s Downstream segment posted losses in Q1 2019 due to lower margins (led by narrow crude oil differentials) and higher maintenance activities. ExxonMobil’s Chemical earnings also fell by 49% YoY mainly due to weaker margins.

Peers’ expected performance

ExxonMobil’s peers Royal Dutch Shell (RDS.A) and BP (BP) are also expected to post 18% and 15% lower EPS in Q1 2019 compared to Q1 2018. Plus, Suncor Energy (SU) and Petrobras’s (PBR) earnings are estimated to fall by 15% YoY and 31% YoY in Q1 2019, respectively.

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