Solid headline beats, but not everything sparkles
Exxon Mobil reported better-than-expected fourth-quarter results with revenue of $82.31 billion, topping the roughly $80.63 billion analysts were looking for, and adjusted earnings per share of $1.71 versus estimates near $1.70. Production also exceeded expectations, with global output hitting about 4.99 million oil-equivalent barrels per day above Wall Street’s forecasts.
Despite beating the bogeys, the stock slid slightly, suggesting investors want more than just a modest EPS beat.
Chemical division drags sentiment
One of the notable blemishes on Exxon’s quarter was its chemical division, which posted a negative result about an $11 million loss, standing in contrast to analyst projections of a profit and marking its first quarterly loss since late 2019. Analysts flagged the downturn in chemical margins as a sign of how tough that part of the energy complex has become.
That segment weakness adds to the narrative that not all parts of Exxon’s business are firing on all cylinders, even as upstream and refining operations hold up.
Oil prices, geopolitics, and valuation pressures
Exxon’s results and share reaction also reflect a broader backdrop of comparatively low oil prices over the past year, which weighed on overall profits despite production strength. Recent strengthening in crude linked to geopolitical tensions may help near-term sentiment, but underlying price pressure and mixed segment performance keep some traders cautious especially given how far XOM has already climbed this year relative to broader markets.
In short: the energy giant beat expectations and grew production, but softer chemical results and oil price headwinds made investors take some air out of the stock despite the solid numbers.