People put gas in cars at an Exxon station
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After Thursday’s close, Exxon (ticker: XOM) submitted a filing to the SEC that lists the factors that will impact its fourth-quarter earnings, including “market dynamics, seasonal patterns, and planned activities.” It’s a lot of numbers broken down by segment, but Wall Street quickly pounced on the filing to do the math.
Credit Suisse analyst Manav Gupta notes that Exxon’s “upstream” business—the division devoted to exploring and drilling for oil—could be up $2 billion or more, and, combined with all the other changes, would put net income at $8.25 billion, or $1.93 a share at the middle of the range. That would be well above Wall Street’s forecast for $1.72 and his own $1.64. As a result, Gupta raised his fourth-quarter estimate to $1.92.
The filing, Gupta says, should also be good news for the other oil companies in his coverage including Chevron (CVX), Suncor Energy (SU), Cenovus Energy (CVE), Imperial Oil (IMO), and Canadian Natural Resources (CNQ).
Barclays analyst Jeanine Wai came up with a slightly different midpoint, for $1.96 a share, but the result is the same—she raised her estimate. Wai now expects Exxon to earn $1.96, up from $1.80.
The news was good enough to lift Exxon stock, despite falling oil prices. WTI Crude futures, the U.S. benchmark, were off 1.3% to $76.02, but falling in premarket trading, Exxon stock was up 0.5% at 10:48 a.m., even as the Energy Select Sector SPDR ETF (XLE) slipped 0.1%.
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