The Dividend Daily

The world’s largest oil company, Exxon Mobil Corporation (XOM), on Thursday posted 68% lower third quarter profit, missing estimates and sending its shares lower.

The Irving, Texas-based company reported third quarter net income of $4.73 billion, or 98 cents per share, down from $14.83 billion, or $2.85 per share, in the year-ago period. Revenue fell 40% from last year, to $82.26 billion.

Last year’s results were bolstered by record oil prices, which currently sit at less than half of year-ago levels.

On average, Wall Street analysts expected a higher profit of $1.03 per share.

Exxon CEO Rex Tillerson said in a statement that “We are well-positioned for continued production growth with projects such as QatarGas, RasGas and Gorgon LNG which will contribute additional long-plateau production for decades and provide Exxon Mobil with a strong foundation.”

Exxon Mobil shares fell $1.55, or -2.1%, in morning trading Thursday.

The Bottom Line
We had removed shares of XOM from our “recommended” list July 31, when shares traded at $84.38. The company has a dividend yield of 2.28%, based on last night’s closing stock price of $73.84. The stock has technical support in the $66-$70 price area. If the stock can firm up, we see overhead resistance around the $77-$80 levels. We would remain on the sidelines for now.

Exxon Mobil Corporation (XOM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.