Major Oil & Energy Earnings On Deck (COP, XOM, CVX, FSLR, DIG)

This is the peak of earnings season and the flow of earnings is coming on strong.  This week is jammed full of energy companies reporting earnings and it will be interesting to see how these companies compare against last year’s earnings and after the September rise in oil prices.   Of the integrated oil giants, we have ConocoPhillips (NYSE: COP), Exxon Mobil Corporation (NYSE: XOM), and Chevron Corp. (NYSE: CVX) this week.  Solar is far from being a true energy sector of yet in the grand scheme of things when you see how little of the overall energy comes from it, but industry leader First Solar, Inc. (NASDAQ: FSLR) is on deck this week.

We have compiled the Thomson Reuters earnings estimates, shown price ranges and performance relevance and added in color on each where applicable.  We have also added in the oil and gas ETF performance in the ProShares Ultra Oil & Gas (NYSE: DIG) for a comparison on how each has performed.

ConocoPhillips (NYSE: COP) reports its oil earnings Wednesday morning.  Thomson Reuters has estimates for the oil giant of $1.45 EPS and $45.59 billion in revenues.  Estimates for the quarter ahead are $1.36 EPS and $46.99 billion in revenues.  With shares at $61.34, the stock just hit a new 52-week high of $61.88 on Friday and hit a new 52-week high on Monday of $62.63.  The market cap here is $91.3 billion and the average analyst price target is $62.00.   Shares are up more than 10% from the August lows.

Exxon Mobil Corporation (NYSE: XOM) is due Thursday morning.  Thomson Reuters has estimates for big-oil and the largest company in America by market cap of $1.39 EPS and $98.11 billion in revenues.  Estimates for the quarter ahead are $1.45 EPS and $98.58 billion in revenues.  With shares at $66.20, Exxon shares have recovered from under $60 at the August lows and from about $57 from the summer-lows.  Despite an underperformance against highs, the stock has recovered more than 10% since the end of August.  The 52-week range is $55.94 to $76.54 and the market cap is around $338 billion.  Analysts have an average price target of $73.57.  We continue to expect that the key point that investors are likely to focus on is its natural gas integration of XTO.

Chevron Corp. (NYSE: CVX) is set to report its oil earnings on Friday morning.  Thomson Reuters has estimates for the oil giant of $2.15 EPS and $49.48 billion in revenues.  Estimates for the quarter ahead are $2.25 EPS and $52.58 billion in revenues.  With shares at $84.87, the stock’s 52-week range is $66.83 to $85.79 now that a new 52-week high was just hit this Monday.  The average analyst price target is now $93.47 and the market cap is $171 billion.

First Solar, Inc. (NASDAQ: FSLR) is due this Thursday after the close.  We will be paying close attention the ever-shrinking cost/watt that First Solar has been able to show: last quarter’s PV module manufacturing cost was reduced to $0.76 per watt, down $0.05 from the prior quarter and 13% from the year before.  Thomson Reuters has estimates for America’s largest solar player of $1.94 EPS and $778.2 million in revenues.  Estimates for the quarter ahead are $1.66 EPS and $635.7 million in revenues.  With shares at $147.15, the stock has recovered some from fresh lows and is back at being close enough to challenge the $150 mark.  Higher oil, a flood of solar companies announcing contracts, and the company’s raised shipment guidance have all helped support shares here.  The market cap is roughly $12.6 billion and analysts have an average price target of $151.68 as of Monday.

Of the ProShares Ultra Oil & Gas (NYSE: DIG), Exxon, Chevron, and ConocoPhillips account for about 42% of the whole ETF.  After closing at $35.03 on Monday, its 52-week trading range is $23.99 to $40.14.  Average volume is 1.58 million shares and the market cap here in this ETF is not enough to really create underlying moves in the share weightings of each component.  This is a case where the tail does not wag the dog.

All prices were based upon Monday’s close and the Thomson Reuters estimates may change slightly ahead of each earnings report.

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JON C. OGG