Energy company Shell (SHEL) is set to release its Q1 2025 earnings report on Friday, May 2. Analysts anticipate earnings per share of $1.63 and revenue of $73.4 billion for the quarter. This represents a decline from the $2.40 per share seen in the year-ago period, according to TipRanks’ data. Interestingly, though, in a recent first-quarter update, Shell gave investors an idea of what to expect from its earnings report.
To begin with, integrated gas production is expected to range between 910,000 and 950,000 barrels of oil equivalent per day, which was impacted by unplanned maintenance and weather disruptions in Australia. Furthermore, upstream production is anticipated to come in between 1.79 million and 1.89 million barrels per day. According to the image below from Main Street Data, we can see that the midpoints of these forecasts are below the figures the company posted last year, which were 992,000 and 1.87 million barrels of oil equivalent per day, respectively.
Nevertheless, despite these challenges, Shell expects trading results in its Chemicals and Products segment to be significantly higher than in the previous quarter. At the same time, Integrated Gas trading will likely be in line with Q4 2024. However, a higher-than-expected upstream tax charge may lead to modest downgrades in its earnings forecast.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a 3.8% price move in either direction. This estimate is derived from the $65 strike price, with call options priced at $1.05 and put options at $1.45.
What Is the Fair Value of SHEL Stock?
Overall, analysts have a Strong Buy consensus rating on SHEL stock based on seven Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SHEL price target of $78.67 per share implies 20.6% upside potential.
