Exxon Mobil shares fall for a third straight session on Wednesday, low oil prices weigh on third-quarter profit, regulatory filing reveals

October 3, 2019 9:36 am

A regulatory filing revealed earlier this week that Exxon Mobil Corp’s operating profit dropped for a fourth consecutive period during the third quarter.

Exxon Mobil shares closed lower for a third consecutive trading session in New York on Wednesday. It has also been the steepest daily loss since August 23rd. The stock went down 2.61% ($1.80) to $67.15, after touching an intraday low at $67.01, or a price level not seen since August 27th ($66.97).

Shares of Exxon Mobil Corporation have retreated 1.53% so far in 2019 compared with a 15.19% gain for the benchmark index, S&P 500 (SPX).

In 2018, Exxon Mobil Corp’s stock went down 18.47%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

According to the filing, a combination of lower oil prices, weaker results in Exxon’s chemical unit and the lack of a tax benefit from the third quarter of 2018 probably reduced operating profit to approximately $4 billion in Q3 this year.

Profit at Exxon Mobil’s oil and gas production business is projected to plummet 45% during the quarter ended on September 30th compared to the $4.23 billion of earnings reported during the same quarter of 2018.

At the same time, profit at Exxon’s refining business is expected to drop 18% during the third quarter compared to the $1.64 billion of earnings reported during the same period of 2018.

Profit at Exxon’s chemicals unit is expected to shrink 72% during the third quarter compared to the $713 million of earnings reported in Q3 of 2018.

Exxon’s official results are scheduled to be released on October 31st.

Analyst stock price forecast and recommendation

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $78.50, with a high estimate of $100.00 and a low estimate of $73.00. The median estimate represents a 16.90% upside compared to the closing price of $67.15 on October 2nd.

The same media also reported that at least 18 out of 25 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

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