According to Zacks, “Predictably, the commodity price slump has adversely affected Royal Dutch Shell’s earnings and cash flows, particularly at its upstream unit. Furthermore, lost reserves/production from the group's assets in Nigeria amid militant attacks and heightened risk related to the company’s remaining operations in the country cannot be ignored either. We also expect Shell ADRs to remain soft due to its major natural gas focus and lofty capital spending. Moreover, the $50 billion BG acquisition is likely to put pressure on the company's balance sheet. Considering these headwinds, we expect Shell to perform below the industry, which gives investors little reason to hold the stock.”
RDS.A has been the subject of a number of other reports. Royal Bank Of Canada lowered shares of Royal Dutch Shell PLC from an outperform rating to a sector perform rating in a research report on Monday, August 1st. Vetr upgraded shares of Royal Dutch Shell PLC from a buy rating to a strong-buy rating and set a $60.50 price target for the company in a research report on Monday, July 25th. Jefferies Group reiterated a buy rating on shares of Royal Dutch Shell PLC in a research report on Sunday, July 10th. Morgan Stanley lowered shares of Royal Dutch Shell PLC from an overweight rating to an equal weight rating in a research report on Thursday, June 30th. Finally, BMO Capital Markets upgraded shares of Royal Dutch Shell PLC from a market perform rating to an outperform rating in a research report on Wednesday, June 15th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, twelve have issued a buy rating and two have issued a strong buy rating to the company. The company has a consensus rating of Buy and an average target price of $58.79.
Royal Dutch Shell PLC (NYSE:RDS.A) last announced its earnings results on Thursday, July 28th. The company reported $0.06 EPS for the quarter, missing the Zacks’ consensus estimate of $0.53 by $0.47. Royal Dutch Shell PLC had a negative net margin of 2.06% and a positive return on equity of 3.04%. The business had revenue of $58.42 billion for the quarter, compared to analysts’ expectations of $60.82 billion. During the same period in the prior year, the company posted $0.61 earnings per share. The firm’s quarterly revenue was down 19.3% on a year-over-year basis.
The company also recently announced a quarterly dividend, which was paid on Monday, September 19th. Stockholders of record on Friday, August 12th were paid a $0.799 dividend. This represents a $3.20 annualized dividend and a dividend yield of Infinity. The ex-dividend date was Wednesday, August 10th. Royal Dutch Shell PLC’s dividend payout ratio is currently -201.26%.
Royal Dutch Shell PLC Company Profile
Royal Dutch Shell plc (Shell) is an independent oil and gas company. The Company explores for crude oil and natural gas across the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company is engaged in the principal aspects of the oil and gas industry in approximately 70 countries.
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