Published on 2 Feb 2023 on Zacks via Yahoo Finance
The energy sector was the best performer last year but the strong momentum fizzled to start 2023. Crude prices have fallen sharply over the past month on concerns over the global slowdown. The trend might reverse as two big oil giants — Exxon Mobil XOM and Chevron CVX — posted mixed Q4 earnings results (read: Energy ETF Winners in Oil's Best Week Since October).Exxon Mobil beat earnings estimates and lagged on revenues while Chevron missed on earnings and topped revenue estimates. However, both major U.S. oil super powers capped off blockbuster results in 2022 with record annual profit. This has put focus on energy ETFs like Energy Select Sector SPDR XLE, iShares U.S. Energy ETF IYE, Vanguard Energy ETF VDE and Fidelity MSCI Energy Index ETF FENY with the largest allocation to the energy behemoths.
Earnings in Focus
The largest U.S. oil producer Exxon Mobil reported earnings per share of $3.40 in the fourth quarter, surpassing the Zacks Consensus Estimate of $3.32 and improving from year-ago earnings of $2.05. Revenues rose 12.3% year over year to $95.4 billion but fell shy of the estimated figure of $101 billion. Exxon Mobil capped off blockbuster results in 2022 with record annual profit.Earnings per share at Chevron came in at $4.09, missing the Zacks Consensus Estimate by 7 cents but improving from year-ago earnings of $2.56 per share. Revenues increased 17.3% year over year to $56.47 billion and edged past the consensus mark of $52.27 billion. Chevron boosted its dividend by more than 6% and authorized a new $75 billion share buyback program that will take effect at the start of Q2 (read: Chevron ETFs to Buy on Buyback & 6% Dividend Hike).