Earnings on Tap: ExxonMobil
The oil giant's shares look fairly valued ahead of its earnings.
ExxonMobil (XOM) will report third-quarter results before the bell Thursday. Wall Street analysts expect earnings of $1.96 per share compared with $2.13 in the year-ago quarter.
Although the company is looking to build on four straight quarters of revenue growth, its results have missed estimates for the past three quarters. Growth in output has been an issue for most of the industry, but analysts will also be looking for updates from the company with respect to its plans in Canada where it acquired Celtic Exploration's leases in Alberta for natural gas earlier in October.
Morningstar senior equity analyst Allen Good expects Exxon to remain a top operator but says the company will find it difficult to deliver returns on par with historical levels because of a more competitive environment.
After a 7% gain in share price year to date, the stock trades around Good's fair value estimate.
Rouhan Sharma does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.