Earnings on Tap: ExxonMobil, Avon Products
Rising oil prices could boost Exxon's profits, but will Avon see a turnaround?
Market Update
ExxonMobil (XOM) reports quarterly earnings before the stock market opens Thursday, with Wall Street expecting the oil major to declare earnings of $2.29 per share, compared with $1.60 in the year-ago quarter.
The recent rise in oil prices should lift profits, while analysts will likely examine the company's plans for gas, given a few recent acquisitions in the shale-gas space and last year's about-$30 billion acquisition of XTO Energy.
Shares in ExxonMobil have gained about 38% in the past year but are trading cheaply compared with Morningstar analyst Allen Good's fair value estimate.
Global beauty company Avon Products is also scheduled to report second-quarter earnings before the opening bell Thursday. Wall Street analysts expect earnings of $0.49 per share, against $0.39 in the year-ago quarter.
Investors will look for trends in the company's important markets of Brazil and Russia and improvement in the skin-care business. Morningstar analyst Erin Lash believes investors' patience is wearing thin. The next few quarters, Lash said, will reveal whether recent steps taken by the management are enough to right the ship and whether the firm's investments are producing the returns necessary to support them.
Rouhan Sharma contributed to this story.