Key Takeaways
- ExxonMobil (XOM) and Chevron (CVX) significantly exceeded Q3 earnings and revenue estimates, with ExxonMobil boosting its quarterly dividend to $1.03 per share and reporting record production in the Permian and Guyana.
- Apple (AAPL) saw its price targets raised by analysts, with BofA Global Research increasing its objective to $320 and Morgan Stanley lifting its target to $298.00, reflecting positive sentiment on future growth.
- Aon (AON) delivered robust Q3 results, surpassing revenue and adjusted EPS expectations, and remains confident in achieving its full-year 2025 financial targets.
- Colgate-Palmolive (CL) maintained its 2025 earnings per share guidance, projecting low single-digit growth for both non-GAAP EPS and net sales, while organic sales growth is expected at the low end of its 2% to 4% outlook.
- Diplomatic efforts between China and Canada are underway to enhance cooperation in trade and energy, with both sides seeking to resolve existing issues and foster a more stable relationship.
Energy Sector Shines with Strong Q3 Performances
Energy giants ExxonMobil (XOM) and Chevron (CVX) reported impressive third-quarter 2025 results, outperforming analyst expectations across key metrics. ExxonMobil posted adjusted earnings per share of $1.88, beating estimates of $1.81 to $1.82, on total revenue and other income of $85.29 billion, surpassing the $83.6 billion estimate. The company also increased its quarterly dividend to $1.03 per share from $0.99. Operational highlights included production of 4,769 thousand oil-equivalent barrels per day (KOEBD) and refinery throughput of 4,106 thousand barrels per day (KBD), both exceeding estimates. ExxonMobil recorded $510 million in restructuring costs during Q3 and achieved record production in the Permian Basin, nearing 1.7 million barrels of oil equivalent per day (BOEPD), alongside over 700,000 barrels per day in Guyana. The company is on track to achieve over $18 billion in cumulative structural cost savings by the end of 2030 and expects full-year cash capital expenditure, excluding acquisitions, to be slightly below previous guidance.
Chevron (CVX) also delivered strong Q3 results, with adjusted EPS of $1.85 against an IBES estimate of $1.68. The company's total revenue and other income reached $49.73 billion, exceeding the $49.01 billion estimate. Chevron reported net oil-equivalent production of 4,086 MBOED and declared a Q3 dividend of $1.71. The integration of Hess is progressing well, despite a Q3 net loss of $235 million due to severance costs.
Tech and Consumer Staples See Analyst Upgrades and Steady Outlooks
In the technology sector, Apple (AAPL) received positive analyst attention with price target increases. BofA Global Research raised its price objective for Apple shares to $320 from $270, citing the company's strong brand, ecosystem, and potential in AI technologies. Morgan Stanley also increased its target price for Apple to $298.00 from $240.00, driven by better-than-expected early demand for the iPhone 17 series and excitement surrounding future product launches, including foldable models and AI features.
Financial services firm Aon (AON) reported robust third-quarter results, with adjusted EPS of $3.05 comfortably beating the $2.9 estimate. Revenue for the quarter reached $3,997 million, surpassing the $3,961 million estimate, and organic growth stood at a strong 7.0%. The company expressed confidence in achieving its full-year 2025 financial targets and is well-positioned for sustainable growth into 2026.
Colgate-Palmolive (CL) provided a consistent outlook for fiscal year 2025, maintaining its earnings per share guidance to be up low single digits on a non-GAAP basis. The consumer products giant expects full-year net sales to also be up low single digits, with organic sales growth anticipated at the low end of its 2% to 4% range. This guidance includes considerations for foreign exchange impacts and the planned exit from private label pet sales.
LyondellBasell (LYB) reported adjusted EPS of $1.01, exceeding the $0.80 estimate, and adjusted EBITDA of $835 million, above the $763.7 million estimate. However, sales and operating revenue for the quarter came in at $7.13 billion, falling short of the $7.48 billion estimate.
China and Canada Seek to Mend and Expand Trade Ties
In diplomatic news, Chinese President Xi Jinping and Premier Li Qiang have both called for enhanced cooperation and improved relations with Canada. President Xi urged China and Canada to foster objective and rational perceptions of each other and work to bring bilateral relations back to a healthy, stable, and sustainable track. He also invited Canadian Prime Minister Mark Carney to visit China.
Premier Li Qiang emphasized China's willingness to deepen and expand mutually beneficial cooperation in areas such as energy, green development, and trade. Both nations are looking to promote the resolution of trade issues, which have included tariffs on Canadian canola and Chinese electric vehicles, steel, and aluminum. The leaders stressed the importance of dialogue and consultation to address each other's concerns and leverage the 55th anniversary of diplomatic ties and the 20th anniversary of their strategic partnership as opportunities for progress.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.