Global energy major ExxonMobil (NYSE:XOM) expects a $400 million hit on its first-quarter upstream earnings from lower oil prices. The company also noted that fluctuations in gas prices could negatively impact its upstream earnings by $200 million to $600 million for the quarter.
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Not a Happy Picture
In total, this could mean an impact of nearly $1 billion on the company’s upstream business. It had generated earnings of $11.4 billion in the comparable year-ago quarter. While Exxon anticipates an increase of $500 million to $700 million in its refining earnings, the gains are seen being offset by mark-to-market derivatives losses to the tune of $900 million to $1.3 billion.
The Street’s Expectations
Analysts expect Exxon to post an EPS of $2.06 on revenue of $77.92 billion in Q1. In the comparable year-ago period, its EPS of $2.83 had comfortably outpaced estimates by $0.23. The energy giant is slated to report its first-quarter results on April 26.
What Is the Target Price for XOM?
Exxon’s share price has rallied by nearly 20% so far this year. Overall, the Street has a Moderate Buy consensus rating on Exxon alongside an average XOM price target of $125.31. This points to a modest 5% potential upside in the stock.
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