This article first appeared on GuruFocus.
Exxon Mobil (NYSE:XOM) shares moved lower 0.31% to $165.35 as of 12:31 p.m. ET on Monday, November 9, in regular trading, as crude extended its slide. West Texas Intermediate fell about 3% to around $87 a barrel and Brent dropped 4% to about $94 after President Donald Trump said renewed strikes on Iran were “highly unlikely” if negotiations made progress. Energy names faced selling pressure across the sector.
Exxon enters the oil pullback from strength. The company reported third-quarter adjusted earnings of $17.5 billion, or $4.23 a share, up from $3.52 in the second quarter. Cash flow from operations reached $25.7 billion and free cash flow $19.1 billion. Exxon returned $9.4 billion to shareholders, including $5.1 billion of buybacks, and plans $20 billion of repurchases in 2027. Net debt fell to $22.1 billion after nearly $11 billion of reduction this year.
GuruFocus rates Exxon 70/100 on its GF Score, with 8/10 for Financial Strength and 7/10 for Profitability. The weak spots are Growth at 4/10 and Momentum at just 2/10, and the price runs about 16% above the GF Value of $142.51. That profile explains the muted move: investors own Exxon for cash returns, not growth. Annualized, third-quarter free cash flow equals about 11% of market value, though that was earned at higher oil prices. The $20 billion buyback plan alone covers about 3% of the company. The next test is fourth-quarter cash flow if crude stays near $87.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
