Exxon Mobil Corp XOM shares are buying and selling 4.6% larger to $99.63 on Wednesday following a brand new 8-Ok submitting that signifies sturdy third-quarter earnings that can probably be above consensus estimates and places administration on monitor to realize its money goal of $20-$30 billion inside the third quarter, in response to Financial institution of America’s Securities division.
What occurred: Analysts at BofA Securities division reiterated a Purchase Ranking and raised Exxon’s third quarter incomes per share (EPS) estimate from $3.46 to $3.88 primarily as a consequence of sturdy gasoline realizations and the greater than offset declines in consecutive oil costs brought on by the lagging results of elevated liquefied pure gasoline contract costs.
“By our estimates, XOM’s indicators counsel 3Q22 upstream earnings will surpass file 2Q22 earnings with an implied mid-point of $11.8bn vs $11.1bn in 2Q22,” Financial institution of America stated in a observe to buyers Wednesday. “Whereas refining is decrease sequentially, 3Q22 nonetheless seems like XOM’s second finest quarter ever, whereas mixed Chemical compounds/Specialty Merchandise holds up a lot better than anticipated, with larger specialty pricing offsetting polymer weak point.”
What’s subsequent: In keeping with analysts at BofA Securities, Exxon is now poised to extend its dividend meaningfully for the primary time in three years and perhaps pace up its buyback program, which has already elevated by thrice to $30 billion by way of the tip of 2023.
The agency acknowledges Exxon as its prime choose, saying “our Purchase Ranking acknowledges XOM as worth, progress and earnings at commodity costs properly under present ranges.”
Exxon Mobil is because of report third-quarter earnings on Oct. 28, 2022.
Worth Motion: Shares of XOM have been up 4.26% on Wednesday at $99.31.