Is a Beat in Store for ExxonMobil (XOM) in Q1 Earnings?

Exxon Mobil Corporation XOM is set to report first-quarter 2022 results on Apr 29, before the opening bell.

In the last reported quarter, the integrated energy giant reported earnings of $2.05 per share, beating the Zacks Consensus Estimate of $1.96 owing to improved realized oil and natural gas prices as well as higher refining and chemical margins.

In the trailing four quarters, ExxonMobil beat the Zacks Consensus Estimate for earnings, delivering an earnings surprise of 5.8%, on average. This is depicted in the graph below:

ExxonMobil Corporation Price and EPS Surprise

Exxon Mobil Corporation Price and EPS Surprise

ExxonMobil Corporation price-eps-surprise | Exxon Mobil Corporation Quote

Let’s see how things have shaped up prior to the announcement.

Estimate Trend

The Zacks Consensus Estimate for ExxonMobil’s first-quarter earnings per share of $2.22 has witnessed five upward and no downward movements in the past 30 days. The consensus estimate suggests a year-over-year increase of 241.5%.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $87.6 billion indicates a 48.1% improvement from the year-ago reported figure.

Earnings Whispers

Our proven model predicts an earnings beat for ExxonMobil this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: ExxonMobil has an Earnings ESP of +1.83%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ExxonMobil currently sports a Zacks Rank #1.

Factors Driving the Better-Than-Expected Earnings

In the March quarter of this year, oil prices were much higher than the year-ago quarter. The significant rise in pricing was owing to Russia’s violent and unprovoked invasion of Ukraine. The spike in oil price was favorable for ExxonMobil’s exploration and production activities.

The Zacks Consensus Estimate for ExxonMobil’s daily oil equivalent production volumes is pegged at 3,837 MBoE/D, suggesting an improvement from 3,787 MBoE/D in the year-ago quarter.

Thus, higher production and price are likely to have aided XOM’s upstream operations.

Other Stocks That Warrant a Look

Here are some other companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

W&T Offshore, Inc. WTI has an Earnings ESP of +12.20% and is a Zacks #3 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

W&T Offshore is scheduled to release first-quarter results on May 3. The Zacks Consensus Estimate for W&T Offshore’s quarterly earnings is pegged at 21 cents per share, suggesting an increase of 90.9% from the prior-year reported figure.

EOG Resources EOG has an Earnings ESP of +1.02% and is a Zacks #2 Ranked player at present.

EOG Resources is scheduled to release first-quarter results on May 5. The Zacks Consensus Estimate for EOG’s quarterly earnings is pegged at $3.57 per share, suggesting an increase of 120.4% from the prior-year figure.

ConocoPhillips COP has an Earnings ESP of +6.47% and flaunts a Zacks Rank #1.

ConocoPhillips is scheduled to release first-quarter earnings on May 5. The Zacks Consensus Estimate for COP’s earnings is pegged at $3.04 per share, suggesting a massive increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

ConocoPhillips (COP) : Free Stock Analysis Report

EOG Resources, Inc. (EOG) : Free Stock Analysis Report

W&T Offshore, Inc. (WTI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research