By Senad Karaahmetovic
ExxonMobil (NYSE:XOM) signaled yesterday that it is set to deliver another strong profit for its fourth quarter. Exxon expects its operating profit to hit $15.4 billion, which should push 2022 full-year profits to around $58B.
The gasoline and diesel business delivered about $4.9B in profit. However, Exxon did warn investors that profits are moving lower from the record prior quarters, mainly due to lower oil and gas prices.
The impact from weaker gas prices is estimated at $2.4B, while oil accounts for as much as $1.7B. Overall, Exxon’s business update implies a Q4 beat as EPS should come in at $3.44, beating the FactSet consensus of $3.33.
Goldman Sachs analysts reiterated a Buy rating on XOM stock despite the significant outperformance in 2022.
“Despite outperformance in 2022, we remain constructive on XOM into 2023 given our view (a) the stock offers a differentiated upstream project queue and (b) continues to experience a unique business transformation driving FCF breakevens lower and allowing for continued capital returns improvement - where we also see 12% total return to XOM on our 12-month $116 price target at our $90/bbl Brent mid-cycle view,” the analysts said in a client note.
Exxon stock price closed at $106.82 yesterday.