Update (4:10 p.m.): Updated with Wednesday market close information.
NEW YORK (TheStreet) -- Exxon Mobil (XOM) fell 2.77% to $93.85, down $2.67 from its previous close of $96.52, at the close of the trading day on Wednesday after the world's largest publicly traded oil company said that it expects its oil and natural gas production to remain flat in the fiscal year 2014, according to Reuters.
Exxon Mobil expects oil and gas production at 4 million barrels oil equivalent per day, or boed, which would be almost unchanged from 2013. This reflects decreased spending and the divestiture of some assets. It expects growth to accelerate from 2015 to 2017, during which it expects production to increase 2% to 3% as several major projects add another 1 million boed. The company plans to start 10 major projects in 2014.
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- The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- EXXON MOBIL CORP's earnings per share declined by 13.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, EXXON MOBIL CORP reported lower earnings of $7.37 versus $9.70 in the prior year. This year, the market expects an improvement in earnings ($7.75 versus $7.37).
- The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 16.1% when compared to the same quarter one year ago, dropping from $9,950.00 million to $8,350.00 million.
- You can view the full analysis from the report here: XOM Ratings Report
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