Exxon Mobil (ticker XOM), the largest oil business in the United States, reported solid second quarter earnings- the best since the third quarter of 2008.
Higher oil prices led to higher profits, as expected. Exxon Mobil took advantage of this economic reality and its profits jumped to $2.18 per share. This represents a sharp improvement compared to its $1.60 earnings per share posted for the same quarter of 2010.
Increased demand for fuel, not just in the Unted States but also on a global scale, helped to drive oil prices higher. Spring and early summer usually signal an increase in driving among Americans and this fact, combined with growing demand for oil in China and other emerging economies, helped to push prices at the pump to higher levels.
Still, in spite of the positive earnings data for Exxon Mobil, the numbers failed to meet analysts’ expecations. Wall Street was looking for profits in the neighborhood of $2.33 per share. The second quarter earnings per share was about seven percent lower than expectations.
Exxon Mobil is headquartered in Irving, Texas but it maintains a very large presence in Houston, with thousands of employees working from dozens of locations in the metropolitan area.
Stocker traders have been lukewarm to the earnings anouncement so far. Common shares traded $1.85 lower on the day of the earnings announcement and they closed down another $1.67 per share the following day.
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