Energy giant Exxon Mobil (New York Stock Exchange: XOM) Q4 2022 earnings will be impacted by lower energy prices compared to Q3. Falling natural gas prices are expected to drag earnings from $2.0 billion to $2.4 billion, while oil prices are expected to drop from $1.3 billion to $1.7 billion, according to an update Exxon provided on its fourth-quarter data. predicted to have an impact. However, upstream revenue is expected to come from mark-to-market derivative gains of $1.3 billion to $1.5 billion.
Energy prices in the fourth quarter were lower than the highs seen in early 2022. This is due to macro pressures and demand concerns from his COVID-19 resurgence in China. Nonetheless, Exxon posted strong year-over-year earnings in the fourth quarter of 2022, ending its most profitable year yet, with estimated net income expected to exceed $58 billion. bloomberg predict.
Exxon’s EPS increased 207% year over year to $10.17 in the first nine months of 2022. The company’s strong earnings have helped it enhance shareholder returns through dividends and buybacks. Exxon plans to announce its fourth quarter 2022 earnings on January 31, 2022. Analysts expect the company to post adjusted EPS of $3.30 in the fourth quarter, up 61% from the year-ago quarter.
The huge profits made by Exxon and other energy giants have led to contingent profits taxes by the UK and the European Union (EU). Exxon recently sued the EU in an attempt to block a windfall tax. US President Joe Biden has also warned oil companies that if they do not use their surplus profits to boost production or lower prices, they are hurting customers already burdened by high inflation. Last month, Exxon announced a capex budget that includes a multi-billion dollar investment in the Permian Basin.
What is your target price for Exxon stock?
Street’s moderate by consensus rating for ExxonMobil stock is based on 9 buys and 6 holds. An average XOM share price target of $119.73 implies a potential upside of 12.1%. The stock has risen more than 66% over the past year. Exxon’s dividend yield is 3.3%.
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