How the Wheels Came Off Royal Dutch Shell's Bus

Seth Jayson, The Motley Fool
Updated

Royal Dutch Shell (NYS: RDS.A) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Royal Dutch Shell beat expectations on revenue and whiffed on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.


Margins dropped across the board.

Revenue details
Royal Dutch Shell logged revenue of $117.07 billion. The three analysts polled by S&P Capital IQ foresaw revenue of $102.43 billion on the same basis. GAAP reported sales were 3.5% lower than the prior-year quarter's $121.26 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.82. The six earnings estimates compiled by S&P Capital IQ forecast $2.13 per share. GAAP EPS of $0.65 for Q2 were 53% lower than the prior-year quarter's $1.39 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.4%, 240 basis points worse than the prior-year quarter. Operating margin was 6.4%, 350 basis points worse than the prior-year quarter. Net margin was 3.5%, 360 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $101.44 billion. On the bottom line, the average EPS estimate is $2.19.

Next year's average estimate for revenue is $456.71 billion. The average EPS estimate is $8.72.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Royal Dutch Shell is outperform, with an average price target of $81.53.

The article How the Wheels Came Off Royal Dutch Shell's Bus originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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