Exxon Mobil (XOM) Q3 Profits and Sales Decline Due to Lower Oil Prices (Update)

October 29, 2009 9:41 AM EDT

(Update on comments from analysts)

Exxon Mobil Corp. (NYSE: XOM) reported a third-quarter EPS of 98 cents a share, ex-items, 4 cents off the analyst estimate of $1.03 and down 60% from last year's $2.74 a share level. Revenue for the company fell drastically from the year ago quarter to $82.26 billion from $147.7 billion.

The world's largest publicly traded oil company cited the decreasing demand for natural gas and oil as the reason for the dramatic decline in revenue. In the third quarter of 2008 oil was selling at $118 a barrel, while in 2009 the price per barrel in the third quarter was at $68.

Oil production for the company increase by 3 percent over the year ago period.

Prices for oil have been hovering around $80 dollars a barrel for the past two weeks, currently trading at $78.70. The rise in oil prices will help revenue results for Exxon Mobil in the next quarter as they look for demand to increase.


Analyst Comments
Collins Stewart analyst, Katherine Lucas Minyard, has maintained a hold rating on Exxon Mobil. "We expect a relatively neutral
stock reaction to the earnings release, and look for color on the conference call on the progress of continued project ramp-ups and capital expenditures through year-end," Minyard said. The analysts from Collins Stewart expect a relatively neutral stock reaction to the third-quarter numbers.

More analyst comments after today's conference call from Exxon Mobil.


Exxon Mobil is currently moving down 0.41 percent at $73.54.

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