Ahead of its third-quarter results scheduled on October 28, Exxon Mobil (NYSE:XOM) provided certain key updates, which indicate that the company’s Q3 earnings would benefit from higher natural gas prices. This would help in offsetting the weaker profits from refining and chemicals businesses compared to the stellar numbers seen in the second quarter.
Exxon’s Q2 results reflected the impact of elevated oil prices, solid refining margins, and cost-cutting measures. However, oil prices have cooled down since then due to demand concerns amid fears of a potential recession.
Exxon’s update reflected that the rise in natural gas prices will favorably impact Q3 results by $1.8 billion to $2.2 billion compared to Q2. However, lower liquids prices are projected to pull down Q3 profitability by $1.4 billion to $1.8 billion. Meanwhile, margins for energy products are expected to negatively impact Q3 by $2.7 billion to $2.9 billion relative to the previous quarter.
What is the Target Price for Exxon Stock?
Exxon stock scores a Moderate Buy consensus rating based on eight Buys and three Holds. The average Exxon price target of $109.05 suggests upside potential of 14.5% from current levels. XOM stock has surged by a whopping 55.7% year-to-date.
