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Exxon Mobil recently declared a second-quarter dividend of $0.99 per share while reporting earnings results for Q1 2025, which showed a slight decline in net income and earnings per share compared to the previous year. This could be a factor weighing on its share price movement, despite broader market positivity with the S&P 500 on a significant winning streak. Persistent pressure on oil prices, alongside uncertainties regarding trade policies, might have contributed to Exxon's flat performance over the last quarter, countering the momentum seen in broader markets.
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The recent announcement of Exxon's dividend declaration, alongside its first-quarter earnings report showing a slight decline in net income, weighs on its current share price despite a broader market upswing. Over the past five years, Exxon Mobil's shares have delivered a total return of 203.11%, offering a backdrop to gauge current performance. This period of robust returns contrasts with the company's one-year performance, where Exxon Mobil's stock performance was aligned with the US Oil and Gas industry trend, which saw an 8.9% decline over the past year.
The slight decline in earnings and ongoing market pressures, including volatile oil prices, could continue to impact Exxon Mobil's revenue and earnings forecasts. Analysts expect a 5.74% annual earnings growth, projecting earnings to reach US$37.8 billion by 2028. However, these forecasts hinge on Exxon's ability to manage policy dependencies and market conditions effectively. The current share price of US$108.36 remains below the consensus price target of US$124.41; this gap of 12.9% may offer a perspective on how analysts view its potential to reach the target within existing market conditions.
Our valuation report unveils the possibility Exxon Mobil's shares may be trading at a discount.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.