Exxon Mobil Corporation (NYSE:XOM) Quarterly Earnings Preview and Financial Analysis

• Analysts predict an EPS of $1.77 and revenue of $87.2 billion for the upcoming quarterly earnings.
• Goldman Sachs analyst Neil Mehta adjusts price forecast for XOM to $123 but maintains a Neutral rating.
• Exxon Mobil's financial metrics reveal a P/E ratio of 14.39 and a debt-to-equity ratio of 0.16, indicating a strong liquidity position and efficient operations.

Exxon Mobil Corporation, listed on the NYSE:XOM, is a leading player in the oil and gas industry. The company is involved in the exploration, production, and distribution of oil and natural gas. It also has a significant presence in the chemical manufacturing sector. Exxon Mobil competes with other major energy companies like Chevron and BP.

As Exxon Mobil prepares to release its quarterly earnings on January 31, 2025, analysts predict an EPS of $1.77 and revenue of $87.2 billion. Despite recent downgrades in EPS and revenue revisions, some believe the company might still achieve an earnings beat. In Q3 2024, Exxon Mobil reported stable revenue and strong performance across its segments, achieving significant cost savings and maintaining solid margins.

Goldman Sachs analyst Neil Mehta has adjusted his price forecast for XOM from $125 to $123, citing the company's relative valuation. Despite Exxon Mobil's strong execution and premium Upstream assets in regions like the Permian and Guyana, Mehta maintains a Neutral rating. The company's strong shareholder returns, including a 4% year-over-year increase in dividends, continue to attract investors.

Exxon Mobil anticipates fluctuations in oil prices to impact its Q4 upstream earnings by $500 million to $900 million. Changes in industry margins are expected to affect energy products earnings by $300 million to $700 million, specialty products earnings by a range of a $100 million decrease to a $100 million increase, and chemical products earnings by $300 million to $500 million. These factors suggest an approximate $1.50 EPS midpoint for the quarter.

The company's financial metrics, such as a P/E ratio of 14.39 and a price-to-sales ratio of 1.39, reflect its market valuation. With an enterprise value to sales ratio of 1.44 and an enterprise value to operating cash flow ratio of 8.73, Exxon Mobil demonstrates efficient operations. Its low debt-to-equity ratio of 0.16 and a current ratio of 1.35 indicate a conservative capital structure and strong liquidity position.