{"id":100519,"date":"2024-04-27T00:08:02","date_gmt":"2024-04-26T20:08:02","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=100519"},"modified":"2024-04-27T00:12:29","modified_gmt":"2024-04-26T20:12:29","slug":"why-has-exxonmobil-stock-retreated-after-earnings","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/why-has-exxonmobil-stock-retreated-after-earnings\/04\/27\/market-updates\/","title":{"rendered":"Why Has ExxonMobil Stock retreated After Earnings?"},"content":{"rendered":"\n<p>Today, ExxonMobil&#8217;s stock price retreated despite what appeared to be good earnings news. Investors are still wary even if the oil giant exceeded revenue projections ($83.1 billion vs. $73.2 billion) and analyst goals for earnings per share ($2.06).<br><br>Some investors may still feel discouraged following ExxonMobil&#8217;s earnings report. This is mainly because of the report\u2019s contradictory signals. The stock&#8217;s decline is a reflection of worries about declining earnings, deteriorating market circumstances, and potential pressure on future free cash flow. Even though ExxonMobil has a low P\/E ratio\u2014less than 14\u2014some analysts nevertheless advise dumping the company.<br><br><strong>Why the market reacted negatively:<br><\/strong><br>The whole story is not fully told by earnings. Exxon&#8217;s profits decreased by 28% on an annual basis when measured using generally accepted accounting rules, or GAAP, a more comprehensive accounting metric. This decline, together with a 26% loss in earnings per share in spite of stock buybacks, casts doubt on the underlying financial stability of the corporation.<br><br>Low natural gas prices and shrinking refining margins have an effect on Exxon&#8217;s earnings. These components highlight the company&#8217;s vulnerability to shifts in the marketplace. Still, there are a few positive aspects; including the sound free cash flow. ExxonMobil&#8217;s free cash flow for the quarter ($10.1 billion) was significantly larger than the company&#8217;s stated profits. This metric provides some solace because it&#8217;s widely regarded as a more reliable indicator of a company&#8217;s financial health. <br><br>ExxonMobil frequently faces the free cash flow imbalance. The business has historically produced impressive earnings reports, but these haven&#8217;t always been accompanied by commensurate free cash flow. Although there has been improvement in the Q1 report, expected capital expenditures of $25 billion, the most in a decade, may put further pressure on this data.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today, ExxonMobil&#8217;s stock price retreated despite what appeared to be good earnings news. Investors are still wary even if the oil giant exceeded revenue projections ($83.1 billion vs. $73.2 billion) and analyst goals for earnings per share ($2.06).Some investors may still feel discouraged following ExxonMobil&#8217;s earnings report. This is mainly because of the report\u2019s contradictory &hellip;<\/p>\n","protected":false},"author":13,"featured_media":100526,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[11050,7851,7113,7322],"class_list":["post-100519","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-cash-flow","tag-corporate-earnings","tag-earnings","tag-exxonmobil"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/100519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=100519"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/100519\/revisions"}],"predecessor-version":[{"id":100527,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/100519\/revisions\/100527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/100526"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=100519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=100519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=100519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}