Imperial Oil (NYSE Arca: IMO) (TSE: IMO) shares jumped almost 10% on October 28 after the company reported better-than-expected Q3-2022 results, smashing both earnings and revenue estimates. Investors cheered the raised production outlook as well the dividend hike.
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Based in Canada, Imperial Oil Ltd. is an integrated oil company majorly owned by American oil giant ExxonMobil (NYSE: XOM)
A Snapshot of IMO’s Q3-2022 Results
Q3-2022 earnings of C$3.24 per share rose over 150% year-over-year and were also significantly ahead of analysts’ expectations of $2.77 per share.
Further, revenues jumped 48.8% year-over-year to C$15.22 billion and surpassed consensus estimates by C$1.7 billion.
The increase in revenues reflected a surge in upstream production as well as robust downstream operating performance with record refinery capacity utilization of 100%. Upstream production came in at 430,000 gross oil-equivalent barrels per day, driven by strong production at Kearl and Cold Lake.
Likewise, the company increased its full-year 2022 guidance at Cold Lake to between 140,000 to 145,000 gross barrels per day.
On top of that, the company announced a 29.4% hike in its quarterly dividend to 44 cents from 34 cents per share.
Is IMO Stock a Good Buy?
As per TipRanks, analysts are cautiously optimistic about Imperial Oil stock and have a Moderate Buy consensus rating, which is based on four Buys and six Holds. IMO’s average price forecast of $55.25 (C$75.20) implies 1.6% upside potential.
Notably, IMO stock has a ‘Perfect 10’ Smart Score on TipRanks, indicating that the stock has strong potential to outperform market expectations, going forward.
