Comment
0
Tweet
0
Print
RSS Feeds

So, the Wheels Came Off Royal Dutch Shell's Bus

Monday - 3/18/2013, 3:15pm  ET

Royal Dutch Shell reported earnings on March 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Royal Dutch Shell missed estimates on revenues and whiffed on earnings per share.

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

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

Revenue details
Royal Dutch Shell notched revenue of $118.05 billion. The three analysts polled by S&P Capital IQ expected to see sales of $120.72 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 $1.78. The seven earnings estimates compiled by S&P Capital IQ forecast $2.14 per share. Non-GAAP EPS of $1.78 for Q4 were 14% higher than the prior-year quarter's $1.56 per share. GAAP EPS of $1.06 for Q4 were 1.9% higher than the prior-year quarter's $1.04 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 14.7%, 20 basis points better than the prior-year quarter. Operating margin was 7.1%, 130 basis points worse than the prior-year quarter. Net margin was 5.7%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $120.16 billion. On the bottom line, the average EPS estimate is $2.20.

Next year's average estimate for revenue is $465.25 billion. The average EPS estimate is $8.17.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 15 members out of 15 rating the stock outperform, and members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two 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 $77.90.

Is Royal Dutch Shell the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

This article was originally published as So, the Wheels Came Off Royal Dutch Shell's Buson Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.