Fed Governor Adriana Kugler to resign
On Monday, UBS analyst Josh Silverstein maintained a Buy rating on ExxonMobil (NYSE: XOM), a $467.8 billion market cap energy giant, with a price target of $146.00, following the company’s release of its first-quarter earnings considerations. According to InvestingPro data, the stock is currently trading below its Fair Value, suggesting potential upside opportunity. The document suggested that ExxonMobil’s earnings per share (EPS) for the first quarter of 2025 could be approximately $1.81, exceeding UBS’s and Wall Street’s expectations of $1.75 and $1.73, respectively. Trading at a P/E ratio of 13.77 and maintaining a solid 3.52% dividend yield, the company has demonstrated consistent shareholder returns, having raised its dividend for 42 consecutive years. This would mark an 8% increase from the fourth quarter of 2024, translating to a net income of about $7.9 billion for the first quarter, assuming the midpoint of the previous corporate expense guidance is accurate.
The anticipated rise in EPS is largely attributed to higher commodity prices and industry margins. In the Upstream sector, increased prices contributed to a $400 million quarter-over-quarter improvement. Meanwhile, the Downstream sector saw refining margins drive a $500 million sequential improvement. Timing effects also played a role, enhancing both Upstream and Energy Products by $300 million quarter-over-quarter. However, the Chemicals and Specialty Products units performed below Street expectations.
Silverstein pointed out that the 8-K report does not account for factors that have historically benefited ExxonMobil, such as growing Upstream volumes, ongoing cost reduction efforts, and a shift towards higher value Downstream products. These elements could potentially offer additional upside compared to the implied EPS from the Earnings Consideration.
The analyst concluded that there might be a reassessment of estimates after upcoming discussions with ExxonMobil to gain further insights into the company’s performance and potential. InvestingPro analysis shows the company maintains a GOOD financial health score, with strong cash flows and moderate debt levels. For deeper insights into ExxonMobil’s financial metrics and growth potential, including 8 additional ProTips and comprehensive valuation analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, Exxon Mobil (NYSE:XOM) has shared its first-quarter earnings considerations for the fiscal year 2025, as per its 8-K filing with the Securities and Exchange Commission. Investors are awaiting detailed financial results, which are crucial for understanding the company’s current financial standing. Meanwhile, Exxon Mobil has announced the retirement of Karen T. McKee, president of ExxonMobil Product Solutions Company, effective May 1, 2025. Matt Crocker will succeed her in this role, marking a significant leadership transition within the company. Additionally, Mizuho (NYSE:MFG) Securities has adjusted its price target for ExxonMobil shares from $131 to $129, retaining a Neutral rating. This revision reflects anticipated first-quarter earnings, with analysts predicting an earnings per share of approximately $1.72. In another development, Exxon Mobil has entered into an agreement for the issuance and sale of $192.8 million in Floating Rate Notes due 2075. This financial move is part of the company’s strategic efforts to secure long-term financing.
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