Exxon and Chevron report earnings on Friday earlier than the bell as vitality corporations proceed to battle, pressured by falling oil costs, wanin
Exxon and Chevron report earnings on Friday earlier than the bell as vitality corporations proceed to battle, pressured by falling oil costs, waning demand and squeezed margins.
The Road is anticipating Exxon’s earnings to plummet by greater than 50% from a 12 months in the past. For Chevron, it is a extra modest 29% decline.
Exxon
Exxon is predicted to report third-quarter earnings of 67 cents per share, in keeping with estimates from FactSet, and $60.9 billion in income.
The EPS quantity is 54% beneath the $1.46 the corporate reported in the identical quarter a 12 months earlier, whereas income forecasts are 20% decrease than the $75.68 billion the corporate earned within the third quarter of 2018.
Analysts had been kind of warned forward of time that the corporate may proceed to face headwinds this quarter.
In an Oct. 1 8-Ok submitting with the Securities and Alternate Fee, Exxon mentioned that weak oil costs might detract $400 million to $700 million from earnings within the third quarter. The submitting mentioned that “market dynamics, seasonal patterns, and planned activities” had been among the many extra elements that would contribute to a decline in earnings.
Earlier this 12 months, the corporate started submitting 8-Ok updates with the Securities and Alternate Fee instantly after the top of the quarter in an effort to offer a extra up-to-date image for buyers and analysts, and to assist them set expectations…