ExxonMobil, the biggest dog in the energy sector’s anti-ESG fight, is about to release its earnings report. Investors are shrugging and waiting for this announcement with bated breath. The company is on pace to deliver EPS of $1.67. At the same time, it’s projected to bring in a staggering $80.94 billion in revenue. Perhaps unsurprisingly, market analysts will be watching this closely. It comes just ahead of the US employment data for December, to be released on Friday. Investors are particularly interested in how the performance of ExxonMobil could influence stock prices in relation to these broader economic indicators.
ExxonMobil has been aggressively searching the waters of the Esequibo region, just east of the Coast of Guyana. They’ve been very successful at increasing oil production there. With a change in regime in Venezuela recently threatening these operations, the specter of disruption has become a reality. Although these challenges remain, recent developments have combined to create a more hopeful picture for ExxonMobil’s long-term future in the region.
ExxonMobil’s Strategic Moves
Nearer to home, ExxonMobil is doubling down on its presence in the Persian basin. This plan amounts to doubling down on its competitive edge within the world’s most profitable oil-producing region. The company’s current expansion efforts there should strengthen its already considerable production capacity and drive even more profitability. Furthermore, ExxonMobil’s operations in Guyana have become increasingly vital to its overall performance, contributing significantly to the company’s production figures.
And just like that, ExxonMobil is getting ready for its earnings advance. Analysts are anxiously awaiting to see how these strategic moves will impact the company’s bottom line. Eyes are especially focused on the EPS and revenue projections. Such optimism means that stock valuations may rise or fall dramatically, on the basis of whether or not these lofty expectations are fulfilled or exceeded!
Market Sentiments and Economic Indicators
The prospect of a new US employment data release further complicates the picture, injecting a further layer of uncertainty into the marketplace. Scheduled for Friday, this data is anticipated to provide insights into the health of the labor market and could influence investor sentiment across various sectors, including energy. Market analysts have a particularly keen eye on ExxonMobil’s performance. Together with the ongoing economic scrutiny, this macroeconomic indicator is likely to weigh on investor confidence.
The S&P 500 is at an interesting crossroads in time. It’s currently facing resistance at 7065 (R1), 7200 (R2), and 7340 (R3). The index has supportive floors at 6925 (S1) and 6788 (S2). Remarkably, the last all-time high number has coincided with the 6925 (S1) support level. Given a generally bullish outlook, the S&P 500 should not close below this support line. A breach below this level could indicate a turn towards bearish sentiment, leading to increased caution from investors.
Future Outlook for ExxonMobil
Beyond the dark clouds of 2020, ExxonMobil still seems well-positioned to grow in the long run. This is because after the regime change in Venezuela, allegations of malicious Venezuelan operations against Guyana escalated. It might now create wonderful new possibilities for the firm. Should ExxonMobil wend its way through these geopolitical currents effectively, it might cement the company’s role as a pivotal leader in oil production.
Investors are highly anticipating its next earnings report. Second, they will look at how ExxonMobil’s strategic initiatives are matched with or in contrast to external economic indicators. The company’s ability to meet or surpass EPS expectations and revenue forecasts will likely dictate its stock performance in the coming weeks.