Consider Royal Dutch Shell For Estimates Beat, High Dividend Yield

In my April 13 earnings preview for Royal Dutch Shell (NYSE: RDS-A) (NYSE: RDS-B), I wrote that, according to my calculations, Shell's upstream earnings which were $493 million in the fourth quarter of 2015 could turn into a loss in the first quarter of 2016. Moreover, I assumed higher downstream earnings in the first quarter than the $1.524 billion obtained in the previous quarter, and that the increase in the downstream earnings will be lower than the decrease in the upstream earnings, and that really is what has happened.
On May 04, Shell reported its first quarter 2016 unaudited financial results. First quarter 2016 earnings attributable to shareholders excluding identified items were $1.6 billion compared with $3.7 billion for the first quarter 2015, a decrease of 58%. Earnings of $0.44 per share were higher by a $0.17 (65%) than the adjusted EPS estimates. Revenues of $48,554 million compared to $65,706 in the same quarter a year ago, a decline of 26%, were below the consensus estimate of $53,165 million. The decline year-over-year in earnings and revenues were due to a 37% lower oil price, a 31% lower U.S. gas price and lower refining margins.

Source: Quarterly Results Announcement
In the report, Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:
Shell's integrated activities differentiate us, with our Downstream and Integrated Gas businesses delivering strong results and underpinning our financial performance despite continued low... Read more

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