Exxon Mobil Stock Slips Pre-Market After Flagging Expected Dip In Q4 Earnings: Retail On Wait-And-Watch Mode

Exxon Mobil said that compared to the third quarter, it expects its earnings from the refining unit to fall between $300 million and $700 million due to lower industry margins for the fourth quarter of 2024.

Exxon Mobil’s shares were down 0.5% in premarket trade on Wednesday after the company revealed that a fall in liquids prices and weak results in its refining business would negatively impact its fourth-quarter earnings. 

In a regulatory filing, the oil major said that its upstream segment earnings in the fourth quarter could decline by $500 million to $900 million from the preceding quarter due to a fall in liquids prices. 

Exxon added that earnings from its energy products segment or refining unit could fall between $300 million and $700 million for the fourth quarter of 2024 compared to the third quarter due to a decline in industry margins. 

The company expects earnings from its chemical segment to fall sequentially by $300 million to $500 million. 

However, the largest U.S. oil company said that a boost in natural gas prices could slightly offset the slump in liquids and refining prices.

Exxon had reported a net income of $8.6 billion in the third quarter. 

Oil prices weakened during the fourth quarter following a ceasefire between Israel and Hezbollah and concerns over global economic growth. 

Following the update, retail sentiment on Stocktwits continued to trend in the ‘bullish’ (63/100) territory, albeit with a lower score. The move was accompanied by ‘high’ retail chatter.

Exxon is expected to report earnings per share (EPS) of $1.73 on revenue of $88.37 billion, according to Koyfin.

One user asked whether oil and gas could be used to fuel artificial intelligence data centers. 

 For updates and corrections, email newsroom[at]stocktwits[dot]com<