Exxon Mobil (XOM) reported better-than-expected results on Friday as the oil giant posted revenues of $59.15 billion, up 5.3% year-on-year, topping consensus estimates of $56.4 billion. The company reported adjusted diluted EPS of $0.65 per share beating analysts’ estimates of $0.60 per share.
Exxon Mobil’s Chairman and CEO, Darren Woods said, “The strong first quarter results reflect the benefits of higher commodity prices and our focus on structural cost reductions, while prioritizing investments in assets with a low cost of supply. Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt.”
The company’s oil-equivalent production was up 3% quarter-on-quarter to 3.8 million barrels per day . XOM’s performance in 1Q was driven by the Chemicals business that delivered strong earnings of $1.4 billion.
XOM also stated that the severe winter storm in Texas in February negatively impacted its earnings in 1Q by $600 million across all its businesses.
In the first quarter, the company also launched the ExxonMobil Low Carbon Solutions business, that will work on solutions to reduce carbon emissions, and will look at commercializing its low-carbon technology portfolio. (See ExxonMobil stock analysis on TipRanks)
Following the earnings, Mizuho Securities analyst Daniel Boyd raised the price target from $55 to $58 (1.3% upside) and reiterated a Hold on the stock. Boyd noted that XOM delivered “strong” results driven by its Chemicals business and believes that XOM will continue to benefit from rising growth on a global basis.
Overall, consensus among analysts is that XOM is a Moderate Buy based on 7 Buys, 10 Holds and 1 Sell. The average analyst price target of $63.56 implies upside potential of about 11% from current levels.
According to TipRanks’ Smart Score system, XOM scores a ‘Perfect 10’ indicating that the stock is likely to outperform market expectations.