Exxon Mobil stocks will go lower in 2015 despite beating Wall Street's earnings expectations last quarter according to CNBC's Jim Cramer.
Cramer said on "Squawk on the Street" Monday that the company's cut of its buyback program signals lower stock prices. "They're cutting back the buyback," he said. "I think this is a bad call. Everyone has to worry about their dividends … but what does it say? To me, it says, 'Hey listen guys, the stock's going to go lower."
Exxon said it would cut back its buyback program for the first quarter to $1 billion, after spending $3 billion repurchasing shares last quarter, according to
The oil giant reported quarterly earnings of $1.56 per share, beating the Street's expectations of $1.34 earnings per share, according to consensus estimates by Thompson Reuters. The company also reported revenue of $87.28 billion, missing investors' estimates of $87.58 billion.
Cramer added that oil companies like Exxon Mobil and Chevron are still unclear on where oil's bottom is. "If you get a V-shaped recovery like a lot of people are counting on every time the futures go up, you see what Chevron [and] Exxon said and you say, 'Wow, I'm too bullish,'" he said. "'Because those guys who really know the business [would be] loading up if they felt it was the bottom.' They're obviously scaling back."
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