Exxon Mobil Corp’s (NYSE:XOM) latest 8-K filing for the first quarter of 2022 indicates another robust sequential earnings growth, according to BofA Securities.
The Exxon Mobil Analyst: Doug Leggate maintained a Buy rating on Exxon Mobil, while keeping the price target unchanged at $120.
The Exxon Mobil Thesis: The upward revision in management’s guidance was “driven mainly by strong upstream earnings more than offsetting slightly lower contributions from Chemicals and Corporate QoQ with downstream relatively in-line,” Leggate said in the note.
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He raised the earnings estimate for the first quarter from $2.15 per share to $2.18 per share, which is higher than the Street estimate of $2.16 per share.
“Our 1Q22 cashflow estimate now stands at about $15.3bn vs. a prior $14.5bn and implies organic FcF in excess of $10.5bn which would be the highest since 3Q08,” the analyst wrote.
“XOM has hit its debt targets, is ready to accelerate buy backs in our view and is the only major to emerge from COVID with line of sight to expand FcF,” he added.
XOM Price Action: Shares of Exxon Mobil had risen by 0.43% to $83.52 at the time of publication Tuesday.
