Shell’s Earnings Report: What to Expect on October 31st
Get ready for Shell’s upcoming earnings report, slated for Thursday, October 31st, 2024. This announcement has investors buzzing, particularly those eager to see if Shell can deliver on expectations and provide positive guidance for the next quarter.
Earnings Estimates and Past Performance
Analysts are predicting an earnings per share (EPS) of $1.75 for the quarter. Keep in mind, guidance is a key driver of stock price movements, so investors will be keenly listening to what Shell has to say about the future. Looking back at past earnings, Shell’s EPS beat estimates by $0.16 in the last quarter, leading to a slight dip in the share price the following day. Here’s a quick glance at Shell’s recent performance:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $1.82 | $1.98 | -2.0% |
| Q1 2024 | $1.86 | $2.40 | 0.0% |
| Q4 2023 | $1.81 | $2.22 | -1.0% |
| Q3 2023 | $1.87 | $1.86 | -4.0% |
Analyst Insights and Industry Comparisons
The market sentiment for Shell is positive, with a consensus rating of ‘Outperform’ from analysts. The average one-year price target is $84.0, suggesting a potential upside of 28.68%. To put this into perspective, let’s compare Shell with its industry peers, TotalEnergies and Chevron.
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TotalEnergies:
Analysts have a ‘Neutral’ outlook for TotalEnergies, with an average one-year price target of $74.5, indicating a potential 14.12% upside.*
Chevron:
Analysts are optimistic about Chevron, giving it an ‘Outperform’ rating with an average one-year price target of $173.08, implying a potential 165.13% upside.Understanding Shell’s Financial Performance
Key Takeaway:
Shell is positioned at the bottom for revenue growth, with a decrease of -0.15%. It ranks in the middle for Gross Profit at $11.90B. Shell is at the bottom for Return on Equity at 1.89%.Shell: A Global Oil and Gas Giant
Shell is a leading integrated oil and gas company, active in exploration, production, refining, and marketing across the globe. The company boasts a significant production capacity, producing 1.5 million barrels of liquids and 7.3 billion cubic feet of natural gas per day in 2023. Shell’s reserves stood at 9.6 billion barrels of oil equivalent at the end of 2023, with liquids making up 49% of that total. Shell’s operations span continents, with a presence in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with a combined capacity of 1.6 million barrels per day, located in the Americas, Asia, Africa, and Europe. Shell also sells around 12 million tons of chemicals annually, with its largest chemical plants often integrated with local refineries, found in Central Europe, China, Singapore, and North America.
Financial Highlights
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Market Capitalization:
Shell’s market capitalization surpasses industry averages, signifying a dominant size and strong market position.*
Revenue Growth:
Over the past three months, Shell has experienced a slight decline in revenue growth, registering approximately -0.15% as of June 30th, 2024. This indicates a reduction in the company’s top-line earnings, trailing behind the average growth rate among its peers in the Energy sector.*
Net Margin:
Shell’s net margin is currently below industry standards, suggesting potential difficulties in achieving strong profitability. With a net margin of 4.72%, the company may face challenges in effectively controlling costs.*
Return on Equity (ROE):
Shell’s ROE is below industry averages, highlighting potential challenges in effectively utilizing equity capital. An ROE of 1.89% indicates potential hurdles in achieving optimal financial returns.*
Return on Assets (ROA):
Shell’s ROA falls below industry averages, suggesting difficulties in efficiently utilizing assets. With an ROA of 0.88%, the company may face obstacles in generating optimal returns from its assets.*
Debt Management:
Shell’s debt-to-equity ratio is below the industry average at 0.41, indicating a lower dependency on debt financing and a more conservative financial approach.As we approach Shell’s earnings announcement, investors are sure to be eager to see how the company navigates the evolving energy landscape and what plans it has in store for the future. Stay tuned for updates and analysis following the report on October 31st!
