Exxon Mobil's (XOM) earnings easily topped Wall Street forecasts in the second quarter, helped by a year-over-year jump in crude oil prices that allowed the world's largest publicly traded oil company to increase production.

Exxon, a component of the Dow Jones Industrial Average ($INDU), said net income nearly doubled to $7.56 billion, or $1.60 a share, from $3.95 billion, or 81 cents, in last year's second quarter. Analysts, on average, expected Exxon to post earnings of $1.47 a share, according to data from Thomson Reuters.

Revenue for the three months ended June 30 advanced to $98.49 billion from $74.46 billion in the year-ago period, which was in line with analysts' average forecast.

Oil prices rose about 30% year-over-year, prompting Exxon to increase production by more than 8%, to the equivalent of 4 million barrels of oil a day, the company said in a statement. On Monday, BP (BP) said its second-quarter earnings likewise topped Wall Street estimates, after excluding costs related to the Gulf oil spill, because of higher oil prices.

$3 Billion Back to Shareholders

The latest results mark Exxon's highest quarterly profit since the last three months of 2008 when it earned $7.82 billion. Still, earnings remain about 50% below the blue-chip's all-time record profit of nearly $15 billion for the third quarter of 2008 when oil prices hit $150 barrel at one point during the summer.

Exxon said it returned more than $3 billion to shareholder's through dividends and share buybacks. The stock is off about 11% year to date, underperforming the broader market by about 10 percentage points (see the chart below). Analysts' average price target stands at $75.69. Add in Exxon's 2.9% dividend yield, and the stock has an implied upside of 27% in the next 12 months or so.


Increase your money and finance knowledge from home

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Investment Strategies

What's your investing game plan?

View Course »

Add a Comment

*0 / 3000 Character Maximum

5 Comments

Filter by:
mjkmat

There earnings should double. They laying off all over there employees and selling off all the stations and terminals. I would have a pocket full of cash too!!Makes you wonder where they are going. Leaving the United States??Why else would they be selling???There not broke

September 09 2010 at 5:25 PM Report abuse rate up rate down Reply
sabcody

No person should complain BECAUSE WE ALL continue to buy from them and then complain. MONEY IS THE ROOT OF ALL EVIL! and also as the saying goes "the higher the horse the harder the fall".

July 31 2010 at 12:44 AM Report abuse rate up rate down Reply
k4jlp

DO YOU PEOPLE HAVE A CLUE ON HOW MUCH ENERGY SPECULATION HAS ALLOWED PRICES AT THE PUMP TO INCREASE TAKING MOST OF THE LEFT OVER INCOME OUT OF OUR POCKETS?? HOW MUCH MORE HAVE WE SPENT FOR GAS, INSURANCE, FOOD, HEALTH CARE??? HOW MUCH MORE PROFIT DOES IT TAKE BEFORE THE CRAP REALLY HITS THE FAN?? GAS AT THE PUMP SHOULD BE 1.29/GALLON AT MOST RIGHT NOW. HOW MUCH PROFIT IS ENOUGH?? ALL THE WHILE OUR CONGRESS LOOKS THE OTHER WAY AND SPENDS MORE TIME TRYING TO MAKE THE OTHER "PARTY" LOOK BAD THAN DOING ANYTHING RIGHT FOR AMERICA...PAYBACK IS HELL...REMEMBER THAT....

July 30 2010 at 7:51 AM Report abuse rate up rate down Reply
jshedl10411

And all the experts cant figure out why the economy is not recovering. THE PRICE OF GAS AND OIL SHOULD BE HALF OF THE CURRENT PRICE.

July 29 2010 at 2:03 PM Report abuse +1 rate up rate down Reply
dxtennis

This is how they are able to pay scientist to deny Global Warming.

They need to go to hell!

July 29 2010 at 1:32 PM Report abuse -1 rate up rate down Reply