Oil Giants Exxon and Chevron Key Figures This Earnings Season
Exxon and Chevron Set to Surprise Investors
With the market's attention primarily on technology stocks and economic policy, an anticipated twist lays within the oil sector. ExxonMobil Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) are gearing up to announce their quarterly earnings, drawing interest from those keeping a close watch on energy stocks.
The Stock Performance of Oil Giants
Interestingly, despite modest overall growth this year, both energy titans seem to be gaining traction. Recently, WTI light crude prices surged over 5%, with the majority of this increase occurring in just three trading sessions, drawing prices closer to the pivotal $70 mark.
In the weeks leading up to their earnings reports, analysts have observed a substantial increase in earnings forecasts for companies within the energy sector. Notably, recent studies revealed that energy EPS estimates have seen a remarkable climb of 4.5% since June 30, outperforming all other S&P 500 sectors.
Rising Earnings Estimates for Chevron and Exxon
As the earnings forecasts for the fourth quarter of 2025 are examined, remarkable updates come into view. Chevron’s estimated earnings per share have escalated from $1.84 to $2.01, showcasing analysts' confidence in its performance moving forward. Furthermore, the earnings forecast for the first quarter of 2026 has also jumped from $2.05 to $2.41.
Exxon’s Forecasts and Market Position
Meanwhile, Exxon’s fourth-quarter EPS predictions have been revised from $1.54 to $1.64, alongside an increase in its first-quarter 2026 estimate from $1.72 to $1.81. Goldman Sachs analyst Neil Mehta has expressed a positive outlook on both companies, emphasizing Exxon’s valor within the upstream market, particularly in the Permian Basin and Guyana.
Mehta remarked on management's ambitious expectation for 10 major projects aimed to contribute over $3 billion in earnings by 2026, coupled with a robust cost structure and consistent capital returns. This stability in Exxon's operations allows it proficiently to navigate a shifting commodities landscape.
Key Catalysts for Chevron's Growth
Shifting the focus to Chevron, Goldman Sachs has highlighted numerous growth catalysts that could bolster its earnings trajectory. With significant projects in regions like Kazakhstan and the Gulf of America, plus the advantageous integration of its recent $53 billion all-stock acquisition of Hess Corp., Chevron anticipates achieving substantial annual cost synergies.
Despite the improvements in fundamentals for both companies, shares of Exxon only increased by 3.4% this year while Chevron's grew by 6.7%, underperforming alongside the broader S&P 500 index (NYSE: SPY), which marked an 8% advancement.
Wall Street's Attention on Energy Companies
The forthcoming earnings reports on Friday could surprise many, as Wall Street remains heavily fixated on technology giants. The potential for Exxon (XOM) and Chevron (CVX) to outperform expectations might be one of the season's best-kept secrets.
Frequently Asked Questions
What are the expectations for Exxon and Chevron's upcoming earnings?
Expectations are high with positive revisions in earnings forecasts, suggesting both companies could report strong results despite broader market pressures.
How have recent oil prices affected these companies?
Recent increases in crude prices, particularly evident over the last weeks, have significantly bolstered the market conditions for both Exxon and Chevron.
Who is Neil Mehta and what are his views on these companies?
Neil Mehta is a Goldman Sachs analyst who is optimistic about both Exxon and Chevron, highlighting their solid positions and upcoming projects.
What recent actions have Chevron and Exxon taken to improve profitability?
Chevron's acquisition of Hess Corp. and Exxon’s focus on cost management and capital returns are key strategies for enhancing profitability.
Why are these oil companies considered under the radar?
Despite the improved fundamentals, Exxon and Chevron have not captured much investor attention compared to tech stocks, resulting in their lower stock performance year-to-date.
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