Published on 29 Apr 2024 on Zacks via Yahoo Finance
Two energy behemoths — Exxon Mobil Corp. XOM and Chevron Corp. CVX — reported disappointing first-quarter 2024 results. Both companies lagged estimates on revenues, while Chevron managed to beat earnings estimates. Lower gas prices and narrowing refining margins took a toll on their profits.XOM shares fell 2.8% at the close on the day following the earnings announcement, while CVX gained a modest 0.4%. This has put the focus on energy ETFs like Energy Select Sector SPDR XLE, Vanguard Energy ETF VDE, iShares U.S. Energy ETF IYE, Fidelity MSCI Energy Index ETF FENY and Strive U.S. Energy ETF DRLL, with the largest allocation to the energy behemoths (read: Can Oil & Energy ETFs Continue to Soar?).
Earnings in Focus
The largest U.S. oil producer, Exxon Mobil, posted earnings per share of $2.06, missing the Zacks Consensus Estimate of $2.19 and lower than the year-ago earnings of $2.83. Revenues fell 4% year over year to $83.08 billion and also lagged the consensus mark of $86.6 billion.Earnings per share at Chevron came in at $2.93, which beat the Zacks Consensus Estimate of $2.84 but declined from the year-ago earnings of $3.55 per share. Revenues declined 4.1% year over year to $48.7 billion and lagged the consensus mark of $49.9 billion.