- Energy giants Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) are both scheduled to announce their Q2 earnings results on Friday, July 30th, before market open.
- XOM: The consensus EPS Estimate is $0.98 vs -$0.70 in Q220 and the consensus Revenue Estimate is $63.96B (+96.1% Y/Y).
- CVX: The consensus EPS Estimate is $1.60 vs -$1.59 in Q220 and the consensus Revenue Estimate is $35.98B vs $13.49B.
- Analysts expect cash flow from operations of $8.37B, upstream earnings of $3.05B and downstream loss of $155.6M for XOM, and CVX to record upstream and downstream earnings of $3.46B and $488.5M, respectively.
- Over the last 3 months, XOM's EPS estimates have seen 11 upward revisions and 3 downward. Revenue estimates have seen 3 upward revisions and 2 downward. CVX, meanwhile, has had 11 upward revisions and 6 downward revisions for EPS estimates. Revenue estimates have seen 3 upward revisions and 1 downward.
- Over the last 2 years, both XOM and CVX have beaten EPS estimates 63% of the time and beaten revenue estimates 25% of the time.
- Last week, the energy sector took a strong lead among the S&P's 11 industry groups, supported by a two-day rebound in crude oil prices that continued even after the latest U.S. inventory report showed an unexpected build.
- However, HSBC analysts have warned that the ongoing boom in oil stocks could be near an end, and oil companies including Chevron will struggle to make progress amid market concerns about its ability to switch swiftly to renewable energy.