ExxonMobil (NYSE:XOM) is reportedly raising the pay of its U.S. employees beyond the current U.S. inflation rate of 7.7%. The move can be attributed to the company’s strong performance in Q3.
In the last reported quarter, the company delivered earnings of $4.45 per share, which beat the expectations of $3.86. Also, revenue jumped 51.9% year-over-year.
The company’s workers are expected to get a salary hike of 9%. Moreover, an additional 5% increase will be awarded to employees who recently got promoted. Also, ExxonMobil is issuing restricted stock options to nearly 14,000 employees, which is more than double last year’s number of 5,000.
Like other energy companies, ExxonMobil prospered in 2022 from elevated oil prices on account of the Russia-Ukraine war. However, crude prices are declining due to the weak global economy and strict COVID measures in China. This might impact the XOM’s performance going forward.
Is XOM a Good Buy?
Wall Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on seven Buys and five Holds. The average XOM stock price target of $118.83 implies 14.7% upside potential from current levels. Shares have rallied 69.6% year-to-date.
Also, it is worth mentioning that the company has consistently paid its quarterly common stock dividend of $0.91 per share. Its dividend yield of 3.32% compares favorably with the sector’s average of 2.74%. Furthermore, XOM’s beta of 0.49 makes it a safe bet in these volatile times.
