Spring, Texas-based Exxon Mobil Corporation (XOM) explores and produces crude oil and natural gas. With a market cap of $497.5 billion, the company provides exploration and production of integrated fuels, lubricants, chemicals, and refined products for the automotive, trucking, aviation, and shipping industries to reduce greenhouse gas emissions. The oil giant is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Friday, Aug. 1.
Ahead of the event, analysts expect XOM to report a profit of $1.44 per share on a diluted basis, down 32.7% from $2.14 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect XOM to report EPS of $6.38, down 18.1% from $7.79 in fiscal 2024. However, its EPS is expected to rise 12.9% year-over-year to $7.20 in fiscal 2026.
XOM stock has underperformed the S&P 500 Index’s ($SPX) 11.6% gains over the past 52 weeks, with shares up marginally during this period. However, it outperformed the Energy Select Sector SPDR Fund’s (XLE) 2.6% decline over the same time frame.
XOM's underperformance is attributed to lower oil and natural gas prices, which have impacted its exploration and production activities. Weaker commodity pricing is expected to decrease earnings in its upstream business. Geopolitical risks also pose a threat, with regulatory and environmental hurdles further complicating the challenges. Industry refining margins, weaker crude prices, divestments, and higher expenses are additional factors contributing to the company's struggles.
On May 2, XOM reported its Q1 results, and its shares closed down more than 2% in the following trading session. Its adjusted EPS of $1.76 beat Wall Street expectations of $1.74. The company’s revenue was $83.1 billion, falling short of Wall Street forecasts of $84.2 billion.
Analysts’ consensus opinion on XOM stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 15 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” seven give a “Hold,” and one recommends a “Strong Sell.” XOM’s average analyst price target is $122.78, indicating a potential upside of 7.8% from the current levels.
