Exxon Mobil Corporation’s (NYSE:XOM) recent weak earnings report didn’t cause a big stock movement. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.
Check out our latest analysis for Exxon Mobil
One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. As it happens, Exxon Mobil issued 11% more new shares over the last year. Therefore, each share now receives a smaller portion of profit. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. You can see a chart of Exxon Mobil’s EPS by clicking here.
A Look At The Impact Of Exxon Mobil’s Dilution On Its Earnings Per Share (EPS)
Three years ago,…
