Goldman Sachs On Exxon Mobil Q4 Performance: Focus On Upstream Strength And Cost Strategies Amid Production Surge
Portfolio Pulse from Lekha Gupta
Goldman Sachs analyst Neil Mehta provided insights on Exxon Mobil Corp's (NYSE:XOM) Q4 FY23 performance, highlighting its upstream strength and cost strategies amid a production surge. The company's adjusted net profit was $9.96 billion, surpassing consensus and Goldman Sachs' estimates. However, revenue fell short of expectations. Net production exceeded analyst estimates, and upstream earnings were above expectations. The focus for the upcoming conference call includes cost reduction, volume guidance, refining outlook, the Pioneer Natural Resources acquisition, and capital spending. Mehta forecasts revenue and EPS for FY24 and FY25, maintaining a Neutral rating with a $114 price target. XOM shares rose by 1.00% to $103.42.
February 02, 2024 | 5:31 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Exxon Mobil's Q4 FY23 performance exceeded profit expectations but missed on revenue, with a focus on upstream strength and cost strategies. Goldman Sachs maintains a Neutral rating with a $114 price target.
The positive earnings surprise and the beat on net production estimates are likely to instill investor confidence in Exxon Mobil's operational efficiency and strategic focus, potentially leading to a short-term positive impact on the stock price. However, the revenue miss and the Neutral rating by Goldman Sachs could temper some of the optimism, suggesting a balanced view on the stock's short-term price movement.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100