Q4 2018 estimated and actual performance
Royal Dutch Shell (RDS.A) is slated to release its Q1 2019 results on May 2. Before we review the Q1 2019 estimates, let’s recap Shell’s Q4 2018 performance compared to forecasts.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
In Q4 2018, Shell’s revenues—at $102.2 billion—exceeded Wall Street analyst estimates. Also in the quarter, Shell’s adjusted EPS stood at $1.4, compared to its estimated EPS of $1.3, beating analysts’ estimate. Also, Shell’s fourth-quarter adjusted earnings per share have risen 15% year-over-year.
Shell’s adjusted earnings of $5.8 billion in Q4 2018 rose 32% over Q4 2017 due to an across-the-board rise in earnings in the upstream, downstream, and integrated gas segments year-over-year.
Shell’s Q1 2019 estimates
Shell is expected to post EPS of $1.09 in Q1 2019, around 18% lower than its Q1 2018 adjusted EPS. Plus, Shell’s Q1 2019 estimated EPS are about 21% lower than its Q4 2018 adjusted EPS. Shell’s revenues are expected to be around $90.4 billion in Q1 2019, about 1% higher than its Q1 2018 revenues.
Shell’s Upstream earnings are likely to be lower due to lower oil prices in Q1 2019 than in Q1 2018. Also, downstream earnings could fall due to weaker refining cracks year-over-year.
Shell’s (RDS.A) peers ExxonMobil (XOM), Chevron (CVX), and BP (BP) are expected to post 36%, 32%, and 15% lower year-over-year EPS in the first quarter. Also, Total’s (TOT) earnings are expected to fall 12% year-over-year in the first quarter. Plus, Suncor Energy (SU) and Petrobras’s (PBR) earnings are expected to fall 14% and 31% year-over-year, respectively.
In the past month, since March 22, 2019, Royal Dutch Shell (RDS.A) stock has risen. Let's compare Shell's returns to the SPDR S&P 500 ETF (SPY) and WTI.
In the last month the CSI 300 is down 11.5%, much more than US indices.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.