Exxon Mobil reported the largest profit in U.S. history Thursday
08-01-2008, 06:32 PM
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Exxon Mobil reported the largest profit in U.S. history Thursday
Never Enough
Rex Tillerson, Exxon Mobil's (XOM - Cramer's Take - Stockpickr) chief executive, may wonder what he has to do to please Wall Street.
Consider: Exxon Mobil reported the largest profit in U.S. history Thursday, racking up a whopping $11.68 billion in net income in its second quarter. That modest sum works out to about $1,485 a second, according to CNNMoney.com.
Even the most vocal pundits of Big Oil would have to give ol' Rex a pat on the proverbial back for raking in that much cash in earnings.
To be so naïve.
Despite posting the largest quarterly profit of any company during the past 232 years of our nation's history, Exxon Mobil missed analyst estimates, and its shares sank $3, or about 3%, in afternoon trading.
Analysts who follow Exxon Mobil had hoped to see $12.1 billion in profit, according to the consensus of estimates compiled by Thomson Reuters. Ingrates!
As if the bullying by analysts wasn't enough, members of Congress piled onto the Tillerson bashing. Galled by Exxon Mobil's earnings, given the stiff price of gas, legislators began discussing ways to eliminate tax breaks to Big Oil.
It appears that Congress and Wall Street have forgotten a basic business maxim: that corporations are in business to make money and return the bucks to their shareholders. Tillerson and crew delivered the dough in that regard as well, doling out some $10.1 billion to shareholders in dividends and share repurchases in the second quarter alone.
Calls to Exxon Mobil went unreturned Thursday afternoon. And here at The Five Dumbest Research Lab, we don't blame Exxon Mobil's brass for keeping mum. Delivering the highest quarterly profit in U.S. history sure has its drawbacks.
In fact, using lingo from Exxon's home state of Texas, we'd put it this way: Tillerson got one undeserved kick to the soft parts.
Rex Tillerson, Exxon Mobil's (XOM - Cramer's Take - Stockpickr) chief executive, may wonder what he has to do to please Wall Street.
Consider: Exxon Mobil reported the largest profit in U.S. history Thursday, racking up a whopping $11.68 billion in net income in its second quarter. That modest sum works out to about $1,485 a second, according to CNNMoney.com.
Even the most vocal pundits of Big Oil would have to give ol' Rex a pat on the proverbial back for raking in that much cash in earnings.
To be so naïve.
Despite posting the largest quarterly profit of any company during the past 232 years of our nation's history, Exxon Mobil missed analyst estimates, and its shares sank $3, or about 3%, in afternoon trading.
Analysts who follow Exxon Mobil had hoped to see $12.1 billion in profit, according to the consensus of estimates compiled by Thomson Reuters. Ingrates!
As if the bullying by analysts wasn't enough, members of Congress piled onto the Tillerson bashing. Galled by Exxon Mobil's earnings, given the stiff price of gas, legislators began discussing ways to eliminate tax breaks to Big Oil.
It appears that Congress and Wall Street have forgotten a basic business maxim: that corporations are in business to make money and return the bucks to their shareholders. Tillerson and crew delivered the dough in that regard as well, doling out some $10.1 billion to shareholders in dividends and share repurchases in the second quarter alone.
Calls to Exxon Mobil went unreturned Thursday afternoon. And here at The Five Dumbest Research Lab, we don't blame Exxon Mobil's brass for keeping mum. Delivering the highest quarterly profit in U.S. history sure has its drawbacks.
In fact, using lingo from Exxon's home state of Texas, we'd put it this way: Tillerson got one undeserved kick to the soft parts.
Anyone? Anyone?
08-01-2008, 06:44 PM
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I cant believe people arent rioting in the streets, they did a poll the other day that showed 70% of people still think oil prices are high because of a supply shortage.
WHAT THE **** IS WRONG WITH THESE IDIOTS!!
WHAT THE **** IS WRONG WITH THESE IDIOTS!!
08-01-2008, 06:48 PM
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on another note, heres how are banks have been doing lately, notice anything different in the last year or so? $200 billion dollars borrowed by banks to cover demand deposits because their assets have less value than their liabilities.
Last edited by Krinkov; 08-01-2008 at 06:52 PM.
08-01-2008, 07:06 PM
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Thats more like 160 Billion. That is so big becuase lots of banks are taking write downs on bad loans they made, losing tons of money and are seeing people take money out of their banks due to the IndyMac situation.
08-01-2008, 09:10 PM
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why do people complain about oil prices? its our fault, we use too much of it. even if they are (or arent) making a huge profit, there shouldn't be complaining. theyre a business. businesses go after $ when there is $ to be made.
08-02-2008, 08:56 AM
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I got a friend who's grandfather had a bunch of exxon stock for years. Well he gave a bunch to my friend about 5 or 6 years ago. During that time my friend didn't work, he didn't have a job for a good two years. He was just living off that stock.