- ExxonMobil's adjusted earnings per share rose significantly year over year, beating analyst predictions.
- The company's total revenue improved dramatically on a year-over-year basis but fell short of consensus estimates.
- Upstream net income was just below analyst predictions.
|ExxonMobil Earnings Results|
|Metric||Beat/Miss/Match||Reported Value||Analysts' Prediction|
|Adjusted Earnings Per Share||Beat||$2.05||$1.95|
|Upstream Segment Net Income (B)||Miss||$6.1||$6.2|
Source: Predictions based on analysts' consensus from Visible Alpha
ExxonMobil (XOM) Financial Results: Analysis
Exxon Mobil Corporation (XOM) reported Q4 FY 2021 earnings that were mixed. Adjusted earnings per share (EPS) came in at $2.05, above what analysts had forecast for the quarter and climbing to the highest levels in at least four years. However, Exxon's revenue gains, while substantial, came up short compared to predictions. Analysts had expected the company's revenue to roughly double to $90.8 billion amid recovery from the COVID-19 pandemic. Exxon's revenue instead climbed by 82.6% year over year to $85.0 billion. Additionally, the company posted its highest cash flow from operating activities since 2012, indicating a robust recovery process.
ExxonMobil's Upstream Segment Net Income
Investors look to the key metric of net income for ExxonMobil's upstream segment, which is one of the company's three main business segments and a strong indicator of its overall success. Upstream operations are involved in the exploration and development of oil and natural gas properties as well as the extraction and production of crude oil and natural gas. ExxonMobil's upstream segment generated $6.1 billion in net income for Q4 FY 2021, slightly below the predicted $6.2 billion for the quarter but the best performance in this area since Q4 FY 2019.
ExxonMobil's Stock Performance
ExxonMobil shares fell by about 0.8% in extended hours trading immediately following the earnings release but quickly recovered. The company's stock has consistently outperformed the market in the past year and has dramatically widened that gap with a strong rally early in 2022. As of Feb. 1, 2022, ExxonMobil shares have provided a one-year trailing total return of 83.1%, well ahead of 19.6% for the S&P 500. In its Q4 FY 2021 earnings statement, ExxonMobil did not provide forward guidance.
ExxonMobil Earnings Call Recap
Chief Financial Officer (CFO) Kathy Mikells said during a conference call that the increase in cash flow will allow ExxonMobil to accelerate the schedule for the company's planned $10 billion share buyback. The plan initially was announced as taking place over two years. Now, the company expects the buybacks to be “faster than that 12-24 month pace,” Mikells said.
ExxonMobil's next earnings report (for Q1 FY 2022) is expected to be released on April 28, 2022.
Visible Alpha. "Financial Data." Accessed Feb. 1, 2022.
ExxonMobil Corp. "ExxonMobil Earns $23 Billion in 2021, Initiates $10 Billion Share Repurchase Program." Accessed Feb. 1, 2022.
TradingView. "Price Chart for XOM and S&P 500." Accessed Feb. 1, 2022.
Accessed Feb. 1, 2022.
Yahoo! Finance. "Earnings Calendar: XOM." Accessed Feb. 1, 2022.