Forget the Earnings Miss: Exxon's Underlying Numbers Tell a Different Story
The fundamentals remain remarkably strong.
Overview
ExxonMobil (NYSE: XOM) technically missed Wall Street's expectations for the second quarter. Adjusted earnings came in at $3.52 per share, just below the consensus estimate of $3.60. That was enough to trigger a negative reaction. But focusing only on the earnings miss overlooks what was arguably one of ExxonMobil's strongest operating quarters in years.
The company reported $14.5 billion in earnings and $14.7 billion in adjusted earnings, its highest quarterly earnings in roughly four years. ExxonMobil also generated $23.6 billion in cash flow from operations and $17.2 billion in free cash flow, giving it plenty of room to continue investing in growth while returning cash to shareholders.
Details
Perhaps the most encouraging numbers weren't on the income statement at all. Exxon delivered its highest upstream production in more than two decades, excluding temporary Middle East disruptions. Production in the Permian Basin reached a record 1.8 million barrels of oil equivalent per day, while the company's fifth floating production vessel for Guyana is scheduled to begin operations in the fourth quarter, adding another 250,000 barrels per day of production capacity.
Source
Originally published at www.fool.com.