Three major corporations—Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), and Colgate-Palmolive (NYSE:CL)—released their fourth-quarter 2024 earnings reports, reflecting a mixed performance across the energy and consumer goods sectors.
While Colgate-Palmolive exceeded expectations, Chevron and Exxon Mobil reported declines in earnings, largely due to weaker refining margins and lower crude oil prices.
As the market looks ahead to 2025, investors are evaluating how these companies will navigate inflationary pressures, global economic uncertainty, and shifting industry trends.
Chevron Reports Lower Profit as Refining Business Declines
Chevron (NYSE:CVX) just posted fourth-quarter earnings that fell short of expectations, as weak refining margins and rising operational costs offset gains from higher production.
- Earnings Per Share (EPS): $2.06, missing analyst expectations of $2.11
- Revenue: $47.18 billion, down 16% year-over-year
- Net Income: $2.3 billion, compared to $6.4 billion in Q4 2023
- Downstream Business (Refining): Lost $248 million, marking its first quarterly loss in four years
Despite strong oil and gas production, Chevron’s refining business struggled, leading to its biggest year-over-year profit drop since 2020. The company also noted higher-than-expected operational expenses, which further weighed on its bottom line.
However, Chevron (NYSE:CVX) continues to invest heavily in the Permian Basin, a key driver of future growth. The company also announced plans to increase its share buyback program to $20 billion per year, signaling confidence in long-term cash flow stability.
Exxon Mobil Faces Lower Revenue as Oil Prices Decline
Exxon Mobil’s (NYSE:XOM) Q4 2024 earnings declined 33% year-over-year, as falling oil prices and lower refining margins pressured profits.
- Earnings Per Share (EPS): $1.67, missing expectations of $1.85
- Revenue: $83.43 billion, down 1% from Q4 2023
- Net Income: $7.63 billion, compared to $12.75 billion a year ago
- Production: Increased 3% year-over-year, with strong output from Guyana
Although oil production increased, the company faced weaker crude prices, which declined by 19% year-over-year. Exxon’s chemicals and refining businesses also struggled, mirroring Chevron’s downstream losses.
Looking ahead, Exxon Mobil (NYSE:XOM) is focused on expanding its low-carbon energy investments while maintaining cost discipline. CEO Darren Woods emphasized that the company remains committed to delivering shareholder returns, despite short-term earnings pressure.
Colgate-Palmolive Beats Expectations on Pricing and Strong Oral Care Demand
Colgate-Palmolive (NYSE:CL) delivered strong fourth-quarter results, surpassing expectations thanks to higher pricing, increased sales volume, and continued growth in emerging markets.
- Earnings Per Share (EPS): $0.91, exceeding estimates of $0.89
- Revenue: $4.95 billion, up 6% year-over-year
- Net Income: $768 million, up from $653 million in Q4 2023
- Pricing Strategy: Raised prices by 7%, helping offset rising costs
Colgate-Palmolive’s (NYSE:CL) oral care division, which includes brands like Colgate, Tom’s of Maine, and Elmex, remained a key driver of growth. Additionally, the company has expanded its e-commerce presence, strengthening its direct-to-consumer sales model.
Looking ahead, Colgate (NYSE:CL) expects continued revenue growth in 2025, though it acknowledges rising production costs and currency fluctuations as potential headwinds.
Looking Ahead: Key Takeaways for Investors
- Energy sector struggles: Chevron and Exxon Mobil saw declining earnings due to lower refining margins, weaker crude prices, and higher costs. Both companies are ramping up share buybacks and cutting expenses to offset these challenges.
- Consumer goods outperform: Colgate-Palmolive posted strong revenue and earnings growth, driven by strategic pricing and robust consumer demand for oral care products.
- Market outlook: While oil and gas production remains strong, pricing pressures could continue to impact energy stocks. Meanwhile, consumer staples like Colgate-Palmolive remain resilient, benefiting from brand strength and pricing power.
As 2025 unfolds, investors will be closely watching commodity price movements, cost control strategies, and global demand trends to assess how these companies adapt to changing market conditions.
Featured Image: Freepik
