Oil and gas major Exxon Mobil Corporation (NYSE: XOM) has reported weaker-than-expected results for the first quarter ended March 31.
Following the earnings release, shares of the company declined 2.2% on Friday. The stock, however, pared its losses slightly to close at $85.50 in the extended trading session.
Revenues & Earnings
Revenues for the quarter came in at $90.5 billion, up 53% from the same quarter last year. The growth in the top line was on the back of a 52.4% year-over-year rise witnessed in operating revenues. The figure, however, failed to surpass the consensus estimate of $92.7 billion.
Earnings of $2.07 per share were up 218.5% year-over-year but came below the consensus estimate of $2.11 per share.
Other Operating Metrics
Net cash from operating activities stood at $14.8 billion, up from $9.2 billion in the same quarter last year.
Similarly, the free cash flow balance at the end of the quarter stood at $10.8 billion, up from $6.9 billion a year ago.
Meanwhile, the company also increased its previously announced buyback program of $10 billion to a total of $30 billion through 2023.
Management Commentary
The CEO of Exxon, Darren Woods, said, “The quarter illustrated the strength of our underlying business and significant progress in further developing our competitively advantaged production portfolio. Earnings increased modestly, as strong margin improvement and underlying growth was offset by weather and timing impacts. The absence of these temporary impacts in March provides strong, positive momentum for the second quarter.”
Stock Rating
Consensus among analysts is a Moderate Buy based on 10 Buys and 11 Holds. XOM’s average price target of $91.93 implies upside potential of 7.8% from current levels. Shares have gained 44.9% over the past year.
Conclusion
Supported by increasing oil and gas prices across the globe due to geopolitical uncertainties, the company was expected to post better results. Its margins are expected to further improve as the oil prices are not expected to come down any time soon.
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