Exxon Mobil stocks may update new Tops
2023.02.03 10:15
Exxon Mobil stocks may update new Tops
The Exxon Mobil Corporation (NYSE:) market was mixed following the fact that the company did not raise its dividend in the same manner as Chevron (NYSE🙂 did. Given that the payout had just been raised during the previous quarter, there was a small chance the business would be able to do so. However, the company’s actions have the potential to be more beneficial to shareholders, enhance its capacity to move toward net zero, increase capital returns for years to come, and reinvest in itself.
Exxon Mobil made improvements to its balance sheet. The company’s cash balance increased to $29.7 billion, the highest level in years, by $22.9 billion from the previous year. In addition, the dividend is paid and increased, shares are repurchased, and debt is paid off. There is not a single negative aspect to that.
Exxon Mobil went above and beyond the analysts’ consensus, which speaks volumes. For more than a year, energy sector estimates have been rising, reaching new highs just before Q4 reporting began. Demand and pricing, which have benefited the margin, are to blame for the strength.
In addition, the company increased production in key fields by 30%, preparing it to continue delivering record-breaking results like Q4. As a result, Exxon’s fourth-quarter revenue exceeded the Marketbeat.com consensus estimates by $5.22 billion. This is a 12.3% increase over the previous year, and the strength carried over to the bottom line.
As higher prices made their way through the system, margins increased significantly over the past year. Even though growth is slowing, Q4 earnings of $12.8 billion are up 43% from the previous year.
However, the conclusion is that oil prices have stabilized above levels prior to the pandemic, sustaining Exxon and other energy companies’ high profits in 2023. There is upside risk in the outlook because the demand outlook favors higher prices even in the event of a recession.
Regardless, the company will continue to achieve record profits for the foreseeable future, as well as improve the balance sheet, the outlook for the dividend increase and share repurchases in the coming year, and the overall financial situation.
Rather than increasing its dividend, Exxon Mobil increased its share repurchase program. Over the next two years, the extension is worth $35 billion, and it could easily be extended into 2023. The share price will be supported by this, which represents roughly 7.5% of the market. Even though their activity has been inconsistent recently, the analysts are also supporting the price.
The pre-release consensus target was the same as the price, trending higher in all three comparisons, and is supported by a Moderate Buy rating that has also increased in value over the past year.
Taking a look at the chart, the price action of Exxon Mobil began by falling, but it quickly rebounded. The given signal is a buy-on-the-dip signal that follows the trend and could soon lead to a new all-time high. The only thing this market needs to buy is the go-ahead, which could easily come from an upgrade from the right office.
