Exxon Mobil Earnings Nearly Double

Before you go, we thought you'd like these...
Before you go close icon
Exxon Mobil's (XOM) earnings easily topped Wall Street forecasts in the second quarter, helped by a year-over-year jump in crude oil prices that allowed the world's largest publicly traded oil company to increase production.

Exxon, a component of the Dow Jones Industrial Average ($INDU), said net income nearly doubled to $7.56 billion, or $1.60 a share, from $3.95 billion, or 81 cents, in last year's second quarter. Analysts, on average, expected Exxon to post earnings of $1.47 a share, according to data from Thomson Reuters.

Revenue for the three months ended June 30 advanced to $98.49 billion from $74.46 billion in the year-ago period, which was in line with analysts' average forecast.

Oil prices rose about 30% year-over-year, prompting Exxon to increase production by more than 8%, to the equivalent of 4 million barrels of oil a day, the company said in a statement. On Monday, BP (BP) said its second-quarter earnings likewise topped Wall Street estimates, after excluding costs related to the Gulf oil spill, because of higher oil prices.

$3 Billion Back to Shareholders

The latest results mark Exxon's highest quarterly profit since the last three months of 2008 when it earned $7.82 billion. Still, earnings remain about 50% below the blue-chip's all-time record profit of nearly $15 billion for the third quarter of 2008 when oil prices hit $150 barrel at one point during the summer.

Exxon said it returned more than $3 billion to shareholder's through dividends and share buybacks. The stock is off about 11% year to date, underperforming the broader market by about 10 percentage points (see the chart below). Analysts' average price target stands at $75.69. Add in Exxon's 2.9% dividend yield, and the stock has an implied upside of 27% in the next 12 months or so.

Read Full Story

Markets

S&P 500 2,246.19 4.84 0.22%
DJIA 19,614.81 65.19 0.33%
NASDAQ 5,417.36 23.59 0.44%
DAX 11,179.42 192.73 1.75%
HANG SENG 22,762.42 -99.42 -0.43%
NIKKEI 225 18,967.62 202.15 1.08%
USD (per EUR) 1.06 0.00 -0.16%
USD (per CHF) 1.02 0.00 0.08%
JPY (per USD) 114.41 0.34 0.29%
GBP (per USD) 1.26 0.00 0.07%

From Our Partners