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The world's largest oil company, Exxon Mobil Corp. (NYSE: XOM) will get have its chance to impress investors this Thursday morning when it releases its third quarter numbers. The company will be announcing its most recent quarterly results before the market opens, and will host a conference call to discuss the numbers starting at 10:00 AM EDT. Analysts expect to see Exxon Mobil show earnings of $1.75 per share for the quarter, and a massive $112.97 billion in revenue.
High oil prices could turn out to be both good and bad for Exxon Mobil this time around. With prices trading at record highs we can expect to see revenues balloon this period, but on the other side of the coin, high oil prices do tend to result in lower refining margins, which could hurt the bottom line. Last week, the third-largest oil company in the world, ConocoPhillips (NYSE: COP) fell victim to shrinking refining margins, and reported a 5 percent drop in quarterly earnings.
Analyst opinion: According to Bank of America (NYSE: BAC) analyst Daniel L. Barcelo, Exxon Mobil will be fine, regardless of the possibility that high oil prices could impact its refining margins. He points to the company's strong diversification as its strength in overcoming the tight margins that have plagued other large oil companies this earnings season.
Barcelo has Exxon Mobil as his top oil play, and gives the company a buy rating. Earlier this month he stated in a research report that Exxon Mobil will overcome margin pressure through its "strong capture of higher global crude prices helped by healthy European petrochemicals margins."
Here is a look at just how strong Exxon Mobil shares have performed over the past 12 months:
What are your thoughts? Will Exxon Mobil surprise Wall Street and put up earnings of more than $1.75 per share this Thursday? My bet is yes, it will. Let us hear your opinions.
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer. DISCLOSURE: Mr. Fowlkes owns and/or controls diversified portfolios of long and short stock and option positions that include holdings in XOM.
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Barcelo has Exxon Mobil as his top oil play, and gives the company a buy rating. Earlier this month he stated in a research report that Exxon Mobil will overcome margin pressure through its "strong capture of higher global crude prices helped by healthy European petrochemicals margins."
Here is a look at just how strong Exxon Mobil shares have performed over the past 12 months:
What are your thoughts? Will Exxon Mobil surprise Wall Street and put up earnings of more than $1.75 per share this Thursday? My bet is yes, it will. Let us hear your opinions.
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer. DISCLOSURE: Mr. Fowlkes owns and/or controls diversified portfolios of long and short stock and option positions that include holdings in XOM.
Visit AOL Money & Finance for more earnings coverage
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Reader Comments (Page 1 of 1)
10-30-2007 @ 3:31PM
dognpony said...
Gouge, gouge, gouge and gouge some more…this is how Exxon-Mobile will make a half a trillion dollars in profits this year. How they have done it is no secret. Large oil companies have us right where they want us. Our driving habits are set and we have to use their products to conduct our daily business.
Thanks to hybrid vehicles and alternative fuels the days are numbered for these money grubbing vultures and they know it. They will fall and fall hard. But until then, if I were financial manager for the big-three automakers, I’d take my bank roll and put it into oil futures for two quarters and use the returns to offset earnings deficits. Why not make the oil companies pay for the slumping auto sales they cause with exorbitant gas and diesel prices?
10-30-2007 @ 4:06PM
rjp said...
half a trillion profit this year? dognpony needs to do a little math.
10-30-2007 @ 6:21PM
Bernie R. said...
ExxonMobil is Gouging? Hmmm, let's discuss...
ExxonMobil EARNS .25 cents per gallon (for you dems/libs - this means 10% profit at $2.75 per gallon of gas) by Exploring/Developing/Producing/Refining/Marketing/and Supplying fuel and lubricants to the WORLD market and dognpony (are you really a "Capitalist" investor???) disregards or at best, "conveniently forgets" to acknowledge that the Federal and State GOVERNMENTS confiscate .30-.60 cents PER GALLON for DOING NOTHING to get the fuel to the customers....
dognpony - your "half a trillion dollar profit" comment displays your ignorance under a bright light...I believe that you are referring to REVENUE (sales...), but ExxonMobil will come up a little short on that THIS YEAR...Maybe $400 Billion in REVENUE... and $40 Billion in profits (remember that is 10%...not gouging at all...)
10-30-2007 @ 11:00PM
dick marcoux said...
I guarantee you, if Dognpony had been smart enough to buy ExxonMobil 4 years ago and see his/her money triple in that period, the present sour-grapes attitude would be replaced with elation...and big profits. And, by the way, oil will remain the main source of energy for the world long after Dognpony has passed from it.
10-31-2007 @ 10:32AM
Paul said...
@400 billion that's only about 8% return p+g doing 22% this year to high of soap prices?
11-16-2007 @ 1:49PM
sofa-king-mad said...
It really doesn't matter who is getting the biggest slice of the pie. The bottom line is, that most of us will have a hard time dealing with energy prices. Not to mention all the price increases for everyday goods and services. Once they go up, it's doubtful they will come back down. I feel bad for minimum wage earners. It will cost them nearly an hour of work just for one gallon of gasoline.