Analysts Estimate Imperial Oil (IMO) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Imperial Oil despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Imperial Oil is expected to report quarterly earnings of $1.48 per share, reflecting a year-over-year decrease of 10.3%, while revenues are projected to be $11.11 billion, an increase of 21.9% from the previous year [3]. - The consensus EPS estimate has been revised down by 9.9% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, making it challenging to predict an earnings beat [10][11]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which historically leads to a positive surprise nearly 70% of the time [8]. Historical Performance - In the last reported quarter, Imperial Oil exceeded the expected earnings of $1.42 per share by delivering $1.69, resulting in a surprise of +19.01% [12]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [13]. Market Reaction Considerations - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [14]. - Although Imperial Oil does not appear to be a strong candidate for an earnings beat, investors should consider additional factors before making investment decisions [16].