Exxon Mobil Corp. (NYSE: XOM) is expected to release its fourth-quarter earnings before the markets open on Tuesday. Thomson Reuters has consensus estimates of $0.64 in earnings per share (EPS) on revenue of $51.36 billion. The same period from the previous year had $1.32 in EPS on $87.28 billion in revenue.
This company is one of Merrill Lynch’s top 10 picks for 2016. Exxon is an energy sector play that the Merrill Lynch analysts are very positive on long-term, as the overall corporate strength of the massive integrated giant plays a significant part in the company’s usually solid earnings reporting pattern.
The company’s global downstream chemical segment plays a huge part for Exxon. It may be a part that many others on Wall Street don’t fully appreciate as the segment contributes an estimated 16% of overall total revenue. Very solid reasons for adding the stock to a long-term growth portfolio include that the company consistently has demonstrated disciplined investing, operational excellence and technological innovation.
Exxon recently appointed the head of its refining business as its new president, which makes him the probable successor to CEO Rex Tillerson, a move that was designed to avoid raising eyebrows on Wall Street. The new president, Darren Woods, is a 23-year company veteran and should keep the colossus on the steady path for growth and progress.
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