It’s energy time!
By: Ahura Chalki
Market analyst – IFC Markets
Exxon Mobil Corporation (NYSE: XOM) is due to report earnings on July 30, before the market opens. This report includes the fiscal quarter ending Jun 2021.
There are several forecasts for its earnings. “According to Zacks Investment Research, based on eight analysts’ forecasts, the consensus EPS forecast for the quarter is $1.02. The reported EPS for the same quarter last year was $-0.7.” Trefis expecting $65.3 B Revenue, with EPS of $1.00. And according to the Visible Alpha, the expectation for EPS is $0.96 with 61.6B revenue.
For Friday, analysts are expecting the second quarter in a row to see a positive EPS report. Last quarter the company had its first positive EPS after the final quarter of FY 2019.
In the latest report, the company had a 5% yearly growth in total revenues thanks to higher production volumes and realized prices. The company reported 3,787 MBOED of crude oil, natural gas.
Also, the company’s net income and operating cash were $2.7 billion and $9.2 billion, respectively. Further, the company made a $2.4 billion investment in property, plant & equipment, with $4B repaid debt and $3.7B billion return to shareholders as dividends.
For tomorrow’s earnings, besides EPS, Revenue, and company net income, Exxon’s upstream segment’s total investment and net income of Exxon’s upstream segment as one of the vital company activities. We are expecting another sharp rebound in company net income from last year’s colossal net loss.
In the H4 chart, technically, it is increasing inside the clear uptrend. With expected positive earnings, breathing above 50% of its Fibonacci level will put the 61.8% of Fibo in the spotlight, and then above 2021 high at $65 area. RSI at 57, with increasing OBV trend line with price also moves in a clear uptrend in the chart above both 20&50 MA lines, technically confirming the market bull’s power. On the flip side, negative earnings and breaching under 23.6% of its Fibonacci at $57 will open the door for $55 and $50, respectively.
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