Shell Q1: Earnings Power Shines Despite Revenue Headwinds
Portfolio Pulse from Lekha Gupta
Shell plc (NYSE:SHEL) reported Q1 FY24 earnings with revenue of $72.48 billion, missing consensus estimates of $82.04 billion. Despite this, adjusted earnings rose 6% Q/Q to $7.73 billion, and adjusted EBITDA increased 15% Q/Q to $18.71 billion. The company announced a dividend of $0.344 per share and a $3.5 billion share buyback program. Shell's stock has gained over 22% in the last 12 months, and it is also featured in the Direxion Hydrogen ETF (NYSE:HJEN) and VanEck Natural Resources ETF (NYSE:HAP).
May 02, 2024 | 1:43 pm
News sentiment analysis
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POSITIVE IMPACT
Shell's Q1 performance and positive investor sentiment may indirectly benefit the VanEck Natural Resources ETF.
Shell's strong quarterly performance and its role in the VanEck Natural Resources ETF portfolio suggest a potential positive impact on HAP's valuation in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Shell's performance and outlook may positively influence the Direxion Hydrogen ETF due to its inclusion in the ETF.
Given Shell's inclusion in the Direxion Hydrogen ETF and its positive earnings report, there could be a beneficial impact on HJEN's performance, albeit indirectly.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Shell reported a revenue miss but showed strong earnings growth, a new dividend, and a share buyback program.
Despite missing revenue estimates, Shell's increased adjusted earnings, dividend announcement, and share buyback program are positive signals for investors, likely leading to a short-term positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100