Market Overview

Exxon Shares Could Be Hurt Near-Term By Q2 Performance; Barclays Cuts Price Target To $100

Exxon Shares Could Be Hurt Near-Term By Q2 Performance; Barclays Cuts Price Target To $100
Related XOM
Richard Pzena Shares His Thoughts On Seagate And Energy Stocks
Fast Money Traders Share Their Picks In The Energy Sector
The Vetr community has downgraded $XOM to 2.5-Stars (Vetr)

Shares of Exxon Mobil Corporation (NYSE: XOM) could come under slight pressure after the company reported an EPS miss, Barclays’ Paul Y. Cheng said in a report. He maintained an Equal Weight rating on the company, while reducing the price target from $102 to $100.

Exxon Mobil reported its EPS at $0.41, significantly below Barclays’ estimate of $0.67 and the consensus expectation of $0.64. The miss was mainly on account of the disappointing performance from the company’s international upstream operations.

Related Link: 5 Expectations From Barclays For Tesoro's Q2 Earnings

Exxon Mobil’s results were substantially impacted by the significant sequential decline in international gas prices. “Operationally, performance was good; production averaged 3,957 mboe/d (000s boe/d) compared to our estimate of 3,923 mboe/d, despite disruptions in Nigeria and Canada,” analyst Paul Cheng mentioned.

The EPS estimates for FY1 and FY2 have been reduced from $2.55 to $2.05 and from $5.45 to $5.05, respectively.

Miss Due To One-Time Impacts

While there are concerns around the stability of near-term profits due to the sequential fluctuation in results, none of the major variances in 2Q reflect “ongoing and structural operational issues,” the analyst commented. He added that a recurrence of a level similar to the 2Q earnings was unlikely going forward.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for XOM

Aug 2016UBSMaintainsNeutral
Jun 2016Bank of AmericaDowngradesBuyNeutral
May 2016Argus ResearchUpgradesHoldBuy

View More Analyst Ratings for XOM
View the Latest Analyst Ratings

Posted-In: Barclays Paul Y. ChengAnalyst Color Price Target Commodities Reiteration Markets Analyst Ratings Best of Benzinga


Related Articles (XOM)

View Comments and Join the Discussion!