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Exxon and Chevron are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – May 9, 2022 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Exxon (XOM - Free Report) and Chevron (CVX - Free Report) .
Energy's Surging: How Sustainable Are These Earnings?
Exxon and Chevron both missed estimates in their recent Q1 earnings reports. But the oil giants had blockbuster numbers otherwise. Exxon's Q1 earnings soared +219.9% on +53% higher revenues, while Chevron's earnings surged +278.2% on +69.8% stronger year-over-year sales.
It isn't just these supermajors that are literally swimming in cash. Every type of business in the oil patch is thriving at the moment. There is no surprise why these companies are enjoying the sunshine, given what's been happening to oil and natural gas prices lately.
The pandemic was tough on the oil patch, with the immediate aftermath of Covid lockdowns pushing oil futures prices into negative territory. But the rebound has been equally impressive.
As you can see above, the group lost money in the second quarter of 2020, when transportation activities came to a halt as a result of Covid lockdowns.
The sector's profitability picture is even more impressive on an annual basis.
Please note that what this chart and the earlier quarterly version are telling us is that the Zacks Energy sector is currently expected to bring in $179.6 billion in 2022 and $37.6 billion in 2022 Q1.
Interestingly, the sector's expected earnings haul in 2022, as well as current estimates for the next two years, represent all-time records for the space, easily surpassing the previous record set in 2008 when oil prices climbed above $140 per barrel.
The Energy sector is one of just a few sectors enjoying positive estimate revisions. In fact, the current estimate of aggregate 2022 total earnings for the sector have almost doubled in the last four months.
Given this impressive revisions trend, it is no surprise that the sector has been the leader in stock market performance lately.
How sustainable these gains are will be determined by how enduring the current commodity price gains turn out to be. These stocks don't need spiking oil prices, what they do need instead are stable prices. Greater confidence in the forward price curve will keep the revisions trend in the positive territory that should help these stocks not only sustain their recent gains, but actually build on them.
The 2022 Q1 Earnings Season Scorecard
We now have Q1 results from 437 S&P 500 members or 87.4% of the index's total membership. Total earnings for these companies are up +8.9% from the same period last year on +14.6% higher revenues, with 79.4% beating EPS estimates and 75.3% beating revenue estimates.
Plenty of results are still to come, though the bulk of S&P 500 earnings are now behind us. This week brings in Q1 results from more than 1000 companies, including 21 S&P 500 members.
The beats percentages were earlier tracking at their lowest levels in recent quarters, but they have notably improved over the past week.
Looking at Q1 as a whole, with actuals for these 437 index members and estimates for the still-to-come companies, total earnings are expected to be up +9.4% on +13.2% higher revenues.
Excluding the -14.9% decline in Finance sector earnings, the growth rate for the index improves to +16.9%. On the other hand, the Energy sector has a very robust earnings profile at present, with the sector expected to bring in +238.1% more earnings than the year-earlier period on +60.3% higher revenues.
Excluding the hefty Energy sector contribution, earnings for the remainder of the index would be up only +3.4% on +9.8% higher revenues.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Exxon and Chevron are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – May 9, 2022 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Exxon (XOM - Free Report) and Chevron (CVX - Free Report) .
Energy's Surging: How Sustainable Are These Earnings?
Exxon and Chevron both missed estimates in their recent Q1 earnings reports. But the oil giants had blockbuster numbers otherwise. Exxon's Q1 earnings soared +219.9% on +53% higher revenues, while Chevron's earnings surged +278.2% on +69.8% stronger year-over-year sales.
It isn't just these supermajors that are literally swimming in cash. Every type of business in the oil patch is thriving at the moment. There is no surprise why these companies are enjoying the sunshine, given what's been happening to oil and natural gas prices lately.
The pandemic was tough on the oil patch, with the immediate aftermath of Covid lockdowns pushing oil futures prices into negative territory. But the rebound has been equally impressive.
As you can see above, the group lost money in the second quarter of 2020, when transportation activities came to a halt as a result of Covid lockdowns.
The sector's profitability picture is even more impressive on an annual basis.
Please note that what this chart and the earlier quarterly version are telling us is that the Zacks Energy sector is currently expected to bring in $179.6 billion in 2022 and $37.6 billion in 2022 Q1.
Interestingly, the sector's expected earnings haul in 2022, as well as current estimates for the next two years, represent all-time records for the space, easily surpassing the previous record set in 2008 when oil prices climbed above $140 per barrel.
The Energy sector is one of just a few sectors enjoying positive estimate revisions. In fact, the current estimate of aggregate 2022 total earnings for the sector have almost doubled in the last four months.
Given this impressive revisions trend, it is no surprise that the sector has been the leader in stock market performance lately.
How sustainable these gains are will be determined by how enduring the current commodity price gains turn out to be. These stocks don't need spiking oil prices, what they do need instead are stable prices. Greater confidence in the forward price curve will keep the revisions trend in the positive territory that should help these stocks not only sustain their recent gains, but actually build on them.
The 2022 Q1 Earnings Season Scorecard
We now have Q1 results from 437 S&P 500 members or 87.4% of the index's total membership. Total earnings for these companies are up +8.9% from the same period last year on +14.6% higher revenues, with 79.4% beating EPS estimates and 75.3% beating revenue estimates.
Plenty of results are still to come, though the bulk of S&P 500 earnings are now behind us. This week brings in Q1 results from more than 1000 companies, including 21 S&P 500 members.
The beats percentages were earlier tracking at their lowest levels in recent quarters, but they have notably improved over the past week.
Looking at Q1 as a whole, with actuals for these 437 index members and estimates for the still-to-come companies, total earnings are expected to be up +9.4% on +13.2% higher revenues.
Excluding the -14.9% decline in Finance sector earnings, the growth rate for the index improves to +16.9%. On the other hand, the Energy sector has a very robust earnings profile at present, with the sector expected to bring in +238.1% more earnings than the year-earlier period on +60.3% higher revenues.
Excluding the hefty Energy sector contribution, earnings for the remainder of the index would be up only +3.4% on +9.8% higher revenues.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Breaking Down the First Quarter Earnings Season So Far
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.