Shell SHEL will release its quarterly earnings report on Friday, 2025-05-02. Here’s a brief overview for investors ahead of the announcement.
Analysts anticipate Shell to report an earnings per share (EPS) of $1.65.
Shell bulls will hope to hear the company announce they’ve not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings History Snapshot
Last quarter the company missed EPS by $0.29, which was followed by a 1.2% drop in the share price the next day.
Here’s a look at Shell’s past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.49 | 1.66 | 1.82 | 1.86 |
| EPS Actual | 1.20 | 1.92 | 1.98 | 2.40 |
| Price Change % | -1.0% | -0.0% | -2.0% | 0.0% |
Tracking Shell’s Stock Performance
Shares of Shell were trading at $64.48 as of April 30. Over the last 52-week period, shares are down 9.94%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analysts’ Perspectives on Shell
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Shell.
Analysts have provided Shell with 6 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $80.0, suggesting a potential 24.07% upside.
Comparing Ratings with Competitors
The below comparison of the analyst ratings and average 1-year price targets of Chevron and TotalEnergies, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Chevron, with an average 1-year price target of $166.91, suggesting a potential 158.86% upside.
- Analysts currently favor an Neutral trajectory for TotalEnergies, with an average 1-year price target of $60.0, suggesting a potential 6.95% downside.
Key Findings: Peer Analysis Summary
The peer analysis summary provides a snapshot of key metrics for Chevron and TotalEnergies, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Shell | Outperform | -15.81% | $6.83B | 0.51% |
| Chevron | Outperform | -1.22% | $13.21B | 2.10% |
| TotalEnergies | Neutral | -13.97% | $13.67B | 3.38% |
Key Takeaway:
Shell ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks in the middle for Return on Equity.
Delving into Shell’s Background
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.
Key Indicators: Shell’s Financial Health
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Challenges: Shell’s revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -15.81%. This indicates a decrease in 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.4%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Shell’s ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.51%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Shell’s ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.24%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Shell’s debt-to-equity ratio is below the industry average at 0.43, 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.
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