Earnings Preview: ExxonMobil and Chevron Set to Post Sharp Profit and Sales Gains
Both consolidated energy companies follow BP's (BP) release of quarterly results Monday when it posted a $17 billion quarterly net loss because of steep charges stemming from the Gulf oil spill. What largely went unnoticed was that on adjusted basis BP posted a profit of $1.79 a share to easily top Wall Street's forecast -- helped by higher oil prices. After all, a barrel of crude fetched as much as $85 at one point during the quarter.
Rebounding oil prices are expected to help ExxonMobil post strong bottom- and top-line gains Thursday. Analysts, on average, forecast Exxon to report earnings of $1.47 a share, according to data from Thomson Reuters, up from 84 cents booked in last year's second quarter. Revenue is expected to rise more than 30% to $98.49 billion from $74.46 billion a year ago.
Chevron, which reports Friday, is forecast to report quarterly earnings of $2.44 a share versus 87 cents in the prior-year period, according to Thomson Reuters. Revenue is expected to jump more than 30% to $52.52 billion from $40.2 billion.
Shares in both Exxon and Chevron have underperformed the broader market year to date. Exxon's stock is off about 11% in 2010, while Chevron is down about 2%. The S&P 500 ($INX) has lost about 1% this year. See the chart below: