Earnings from two big oil companies disappointed Wall Street. Results were hurt by falling oil prices. Bobbi Rebell reports.
Plunging profits at big oil companies. Exxon Mobil's falling by more than half. Chevron profits down 90 percent. Both worse than Wall Street forecasts. Crude oil prices the culprit- down 40 percent this past quarter versus a year ago, and down again on Friday. This was the lowest profit for Exxon in six years, and its stock fell on the news. But notably, S&P Capital IQ's Stewart Glickman upgraded the stock, saying Exxon's free cash flow was better than its peers, and the stock is trading at a three-year low, making it a good value. SOUNDBITE: STEWART GLICKMAN, DIRECTOR OF ENERGY RESEARCH, S&P CAPITAL IQ (ENGLISH) SAYING: "All in all I didn't think it was that terrible a quarter. They have a history of doing you know very efficient operations anyway and we upgraded our opinion on the shares to a 4 stars or buy opinion from what had previously been 3 stars or hold." For Chevron the lowest profit in more than 12 years, was reflected in its shares Friday. S&P's Glickman downgraded his opinion on that stock. Both companies are focusing on cutting costs. Exxon announcing it is paring back its stock buybacks, after cutting capital spending. Chevron laying off workers and renegotiating contracts.