Royal Dutch Shell Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Royal Dutch Shell (NYS: RDSA) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Royal Dutch Shell missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share expanded slightly. GAAP earnings per share shrank.


Gross margins grew, operating margins increased, net margins dropped.

Revenue details
 Royal Dutch Shell booked revenue of $112.81 billion. The four analysts polled by S&P Capital IQ hoped for net sales of $115.67 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $2.38. The seven earnings estimates compiled by S&P Capital IQ anticipated $2.10 per share. Non-GAAP EPS of $2.38 for Q1 were 1.7% higher than the prior-year quarter's $2.34 per share. GAAP EPS of $1.29 for Q1 were 7.9% lower than the prior-year quarter's $1.40 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 19.4%, 290 basis points better than the prior-year quarter. Operating margin was 11.9%, 180 basis points better than the prior-year quarter. Net margin was 7.1%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $122.91 billion. On the bottom line, the average EPS estimate is $1.93.

Next year's average estimate for revenue is $446.28 billion. The average EPS estimate is $8.29.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 14 members out of 15 rating the stock outperform, and one members rating it underperform. Among one CAPS All-Star picks (recommendations by the highest-ranked CAPS members), one give Royal Dutch Shell a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Royal Dutch Shell is hold, with an average price target of $75.93.

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The article Royal Dutch Shell Beats Analyst Estimates on EPS 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 position in any of the stocks mentioned. 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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