Before the opening bell on Monday, Exxon released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside XOM’s Earnings
Earnings
Exxon reported earnings of $6.57 billion, or $1.56 per share, down from $8.35 billion, or $1.91 per share, last year. On average, analysts expected to see EPS of $1.34.
Revenue
Revenue fell to $87.28 billion from last year’s $110.86 billion. Analysts expected to see revenue of $87.58 billion.
Energy Stocks Remain Risky
While Exxon posted a significant drop in revenue, its report was not a surprise for investors. Going forward, the spotlight will be on the recovery of the energy sector. Wall Street will be watching companies like Exxon to to determine if they are seeing V-shape or U-shape recovery.
While Exxon has a decent dividend yield around 3%, there is still a high amount of risk for the stock as estimates could continue to be trimmed. Investors may consider avoiding the energy battle and look elsewhere rather than investing in the embattled energy space.
Mutual Funds to Watch
Investors interested in Exxon may also consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in XOM.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VTSMX | Vanguard Total Stock Market Index | 1.69% |
| VFINX | Vanguard 500 Index | 1.08% |
| FUSEX | Fidelity Spartan 500 Index | 0.46% |
The Bottom Line
The funds above are a great way for investors to gain exposure to a diverse bundle of securities and industries. Investors interested in XOM may also be interested in Chevron (CVX) or BP (BP).