Exxon Shares Rally Following Q2 Earnings

Surprise Revenues JumpShares in Exxon are trading higher ahead of the open today as the post-earnings rebound continues to play out. Shares tanked initially as the company reported a lower EPS than Wall Street was looking for. However, with revenues seen coming in above forecasts, sentiment swiftly changed and the stock was seen well bid off Friday’s lows. On the numbers front, Exxon posted Q2 EPS of $1.914, below the $2.03 the market was looking for. However, revenues were seen at $82.914 billion, above the $81.803 billion the market was looking for.Cost Cutting Boosts ProfitsIn terms of the breakdown of performance, Exxon attributed the weaker earnings results to lower natural gas realizations and softer industry refining margins. The results were being closely watched on the back of the record profits recorded by the company over 2022. With energy prices having tanked since last year’s highs, traders were keen to see how performance has been impacted. Despite the slump in energy prices, Q2 was actually the strongest for Exxon in a decade (excluding last year’s results) with the company citing a cost reduction campaign and the sale of lower yielding assets as the key drivers behind its success.Bullish Investor SentimentWith performance holding up despite the slump in energy prices, investors have been buoyed by the group’s results, suggesting further upside for the stock near-term. Additionally, with oil prices potentially carving out a base, a fresh rally in energy prices would see Exxon stock gain further.Technical ViewsExxonExxon shares have been grinding lower within a falling wedge recently, anchored around the 104.40 level. Price is now sitting back atop that level and, while above here, the focus is on a breakout higher with a test of 114.96 the next objective for bulls.