An Earnings Miss: Europe’s largest oil company Royal Dutch Shell plc reported earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of $1.12, below the Zacks Consensus Estimate of $1.41 but above the year-ago profit of 88 cents.
Estimate Revision Trend & Surprise History: The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised 6% upward over the last 30 days.
Coming to earnings surprise history, the blue-chip company has an excellent record: its beaten estimates in each of the last four quarters, as shown in the chart below:
Revenues: Revenues of $99,268 million were 37% above the second-quarter 2017 sales of $72,702 million.
Key Stats: Upstream segment recorded a profit of $1,457 million (excluding items) during the quarter, soaring from the paltry $339 million (adjusted) achieved in the year-ago period. Shell’s upstream volumes averaged 2,488 thousand oil-equivalent barrels per day (MBOE/d), 7% lower than the year-ago period. At $66.09 per barrel, the group’s worldwide realized liquids prices were 45% above the year-earlier levels while natural gas prices were up 13%.
In the downstream segment – that focuses on refining, marketing and retailing – the Anglo-Dutch super-major reported adjusted income of $1,660 million, 34% less than the $2,529 million earned in the year-ago period.
The Integrated Gas unit reported adjusted income of $2,305 million, almost doubling from the $1,169 million in April-June quarter of 2017.
However, the oil major’s operating cash flow fell to $9,500 million, down by 16% from the year-earlier level.
Buyback Plans: The company approved a plan to buy back at least $25 billion in common stock in the period 2018-2020.
Zacks Rank: Currently, Royal Dutch Shell carries a Zacks Rank #2 (Buy).
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this Royal Dutch Shell earnings report later!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Image: Bigstock
Shell (RDS.A) Q2 Earnings Miss, Unveils $25B Buyback Plan
An Earnings Miss: Europe’s largest oil company Royal Dutch Shell plc reported earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of $1.12, below the Zacks Consensus Estimate of $1.41 but above the year-ago profit of 88 cents.
Estimate Revision Trend & Surprise History: The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised 6% upward over the last 30 days.
Coming to earnings surprise history, the blue-chip company has an excellent record: its beaten estimates in each of the last four quarters, as shown in the chart below:
Royal Dutch Shell PLC Price and EPS Surprise
Royal Dutch Shell PLC Price and EPS Surprise | Royal Dutch Shell PLC Quote
Revenues: Revenues of $99,268 million were 37% above the second-quarter 2017 sales of $72,702 million.
Key Stats: Upstream segment recorded a profit of $1,457 million (excluding items) during the quarter, soaring from the paltry $339 million (adjusted) achieved in the year-ago period. Shell’s upstream volumes averaged 2,488 thousand oil-equivalent barrels per day (MBOE/d), 7% lower than the year-ago period. At $66.09 per barrel, the group’s worldwide realized liquids prices were 45% above the year-earlier levels while natural gas prices were up 13%.
In the downstream segment – that focuses on refining, marketing and retailing – the Anglo-Dutch super-major reported adjusted income of $1,660 million, 34% less than the $2,529 million earned in the year-ago period.
The Integrated Gas unit reported adjusted income of $2,305 million, almost doubling from the $1,169 million in April-June quarter of 2017.
However, the oil major’s operating cash flow fell to $9,500 million, down by 16% from the year-earlier level.
Buyback Plans: The company approved a plan to buy back at least $25 billion in common stock in the period 2018-2020.
Zacks Rank: Currently, Royal Dutch Shell carries a Zacks Rank #2 (Buy).
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this Royal Dutch Shell earnings report later!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>