Earnings season is well underway on Wall Street and investors have already grown accustomed to a few recurring themes. The most common of which is the U.S. dollars’ rise on firms deriving a meaningful portion of their revenues from around the globe.
Equally important, the collapse of crude oil remains a key theme hogging the headlines, even as energy prices have posted a comeback in recent weeks. As such, we’re focusing our spotlight this week on “Big Oil” earnings releases.
Big Oil Reports Q1 2015 Earnings
Three of the world’s biggest oil companies, and certainly the biggest ones from the home front, are all set to report earnings results later in the week. Below, we’ll take a look at the analyst expectations surrounding each firm.
Exxon Mobil (XOM)
This big oil granddaddy has been a notable loser of late, shedding upwards of 13% over the trailing one-year period. XOM is slated to report quarterly results before Thursday’s opening bell, and analysts are bracing for a big drop in profitability. Experts are expecting to see EPS come in at $0.80, compared to $2.10 from one year ago. Given its sheer size and dominance in the global energy market, XOM’s earnings report will be closely watched by those interested in deciphering what the future holds for the fossil fuel industry.
This energy bellwether has endured approximately a 10% decline over the past year. Before the opening bell on Thursday, analysts are expecting for COP to generate a loss of $0.12 per share, which would be a stark contrast to the previous one-year period, when the company posted EPS of $1.81.
This oil & gas juggernaut has endured a decline of over 11% throughout the past year. CVX is slated to report earnings before the opening bell on Friday, and analysts are expecting to see EPS come in at $0.74, compared to $2.36 from one year ago.
The Bottom Line
Big drops are expected in profitability with regards to quarterly earnings results from oil & gas producers. That being said, any upbeat surprises, no matter how trivial, can serve as fuel for sharp rallies in light of the oversold environment for energy equities as a whole. Keep your ear to the ground as CEO commentary following the earnings releases will likely reveal more important insights than the numerical results themselves. Be sure to take note of future outlooks and how each company plans to continue thriving if oil prices remain depressed for the foreseeable future.
Disclosure: No positions at time of writing.