Earnings Preview For Shell

Shell SHEL is set to give its latest quarterly earnings report on Thursday, 2024-10-31. Here's what investors need to know before the announcement.

Analysts estimate that Shell will report an earnings per share (EPS) of $1.75.

The announcement from Shell is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

The company's EPS beat by $0.16 in the last quarter, leading to a 1.73% drop in the share price on the following day.

Here's a look at Shell's past performance and the resulting price change:

Insights Shared by Analysts on Shell

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Shell.

The consensus rating for Shell is Outperform, based on 3 analyst ratings. With an average one-year price target of $84.0, there's a potential 28.68% upside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of TotalEnergies and Chevron, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• For TotalEnergies, analysts project an Neutral trajectory, with an average 1-year price target of $74.5, indicating a potential 14.12% upside.
• The prevailing sentiment among analysts is an Outperform trajectory for Chevron, with an average 1-year price target of $173.08, implying a potential 165.13% upside.

Insights: Peer Analysis

In the peer analysis summary, key metrics for TotalEnergies and Chevron are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative 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%.

Unveiling the Story Behind Shell

Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2023, it produced 1.5 million barrels of liquids and 7.3 billion cubic feet of natural gas per day. At end-2023, reserves stood at 9.6 billion barrels of oil equivalent, 49% of which, consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.6 mmb/d located in the Americas, Asia, Africa, and Europe and sells about 12 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.

Financial Insights: Shell

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Decline in Revenue: Over the 3 months period, Shell faced challenges, resulting in a decline of approximately -0.15% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Net Margin: Shell's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 4.72%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Shell's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.89%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Shell's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.88%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Shell's debt-to-equity ratio is below the industry average at 0.41, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Shell visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.