The $1.7 billion net income figure came in $100 million shy of last quarter number which means Exxon’s downward earnings spiral hasn’t come to an end yet.
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Cheaper oil is leading to the lowest summer gasoline prices in years, and it is causing heartburn for oil companies and their shareholders. The stock now has Price to Sales (P/S) value of 1.54 where Price to Book (P/B) value stands at 2.16.XOM is now showing ROA (Return on Assets) value of 3.8% where ROE (Return on Equity) is 7.6%.
Earnings from the downstream segment totaled $825 million, which Exxon Mobil attributed to significantly lower global refining margins versus the prior year’s second quarter. The firm attains analyst recommendation of 2.90 with week’s performance of -5.38%. Independent Research GmbH set a $90.00 price target on shares of Exxon Mobil Corp. and gave the stock a “neutral” rating in a research report on Monday, May 9th.
Oil is flirting with bear-market territory once again, as USA prices have fallen almost 20% since hitting a 52-week high of $51.23 on June 8. The trading volume was recorded to 3.88 million shares as compared to average traded volume of 3.31 million shares. Also, VP Bradley W. Corson sold 6,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 7th. Analysts were hoping that the second quarter would mark the bottom of Exxon’s earnings slump but it wasn’t to be. For the current quarter the company has high EPS estimates of $1.22 in contradiction of low EPS estimates of $0.45. Exxon Mobil Corp. now has an average rating of “Hold” and a consensus price target of $86.65. These proceeds were utilized to pay out dividends of $3.1 billion in the second quarter, representing a 2.7% rise from the second quarter of 2015. The stock is presently trading down its SMA-50 of $30.71. Stock markets are largely forward-looking, and hence stock prices are reported depending on the estimations that investors get from the report. On May 18, 2016, Argus Research said it Upgrades its rating on Exxon Mobil Corporation.
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Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, explained to The Wall Street Journal that Exxon could end the year outside of the top five largest USA -listed companies for the first time since at least 1980. The Company is involved in the manufacturing of petroleum products and transportation and sale of crude oil natural gas and petroleum products. The Company also manufactures and markets petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and various specialty products. Flossbach Von Storch AG raised its stake in shares of Exxon Mobil Corp.by 14.5% in the fourth quarter.
