Imperial Oil (NYSEAMERICAN:IMO) Posts Earnings Results, Beats Estimates By $0.91 EPS

Imperial Oil (NYSEAMERICAN:IMO) (TSE:IMO) posted its earnings results on Friday. The energy company reported $4.52 earnings per share for the quarter, beating the consensus estimate of $3.61 by $0.91, Briefing.com reports. Imperial Oil had a net margin of 6.22% and a return on equity of 16.88%. During the same quarter last year, the business posted $1.86 EPS. Imperial Oil’s revenue for the quarter was up 43.0% on a year-over-year basis.

Here are the key takeaways from Imperial Oil’s conference call:

• Positive Sentiment: Imperial reported second-quarter net income of CAD 2.0 billion, up CAD 1.24 billion year over year, supported primarily by higher commodity prices. Operating cash flow excluding working capital reached CAD 2.52 billion.
• Positive Sentiment: The company plans to accelerate its normal-course issuer bid and expects to repurchase all remaining allowable shares before year-end, while maintaining its record of 31 consecutive years of annual dividend growth.
• Negative Sentiment: Upstream production fell to 414,000 gross oil-equivalent barrels per day, and full-year production is now expected toward the low end of guidance due to turnarounds, unplanned Cold Lake maintenance, and weather impacts. Downstream throughput guidance was also reduced by approximately 6% because of downtime, renewable-diesel prioritization, rail congestion, and a Nanticoke outage.
• Positive Sentiment: Kearl’s turnaround was completed ahead of schedule and under budget, with the company targeting production of approximately 300,000 barrels per day and unit costs of about CAD 18 per barrel in 2027. New recovery projects are expected to begin contributing production later this year.
• Positive Sentiment: Imperial continues to advance long-term oil-sands growth, including the Aspen Enhanced Bitumen Recovery Technology pilot scheduled to start in 2027, with Aspen, Clark Creek, and Corner potentially supporting a doubling of gross operated upstream production over time.

Imperial Oil Stock Performance

Shares of NYSEAMERICAN IMO traded up $0.77 during midday trading on Friday, hitting $129.57. The company’s stock had a trading volume of 901,687 shares, compared to its average volume of 673,120. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.02 and a current ratio of 1.23. Imperial Oil has a 1-year low of $81.87 and a 1-year high of $139.44. The firm’s fifty day moving average price is $120.67 and its 200-day moving average price is $120.38. The firm has a market cap of $62.66 billion, a P/E ratio of 30.56 and a beta of 0.45.

Hedge Funds Weigh In On Imperial Oil

Institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC boosted its position in Imperial Oil by 5.0% during the 1st quarter. AQR Capital Management LLC now owns 34,218 shares of the energy company’s stock valued at $2,475,000 after purchasing an additional 1,627 shares during the period. NewEdge Advisors LLC increased its position in Imperial Oil by 54.7% in the first quarter. NewEdge Advisors LLC now owns 11,887 shares of the energy company’s stock worth $860,000 after buying an additional 4,201 shares during the period. Focus Partners Wealth bought a new stake in Imperial Oil in the first quarter valued at $200,000. Cetera Investment Advisers lifted its stake in Imperial Oil by 6.8% in the second quarter. Cetera Investment Advisers now owns 4,569 shares of the energy company’s stock valued at $363,000 after buying an additional 291 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in shares of Imperial Oil by 4.7% during the second quarter. Invesco Ltd. now owns 354,865 shares of the energy company’s stock valued at $28,205,000 after acquiring an additional 15,834 shares during the period. 20.74% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on IMO. Imperial Capital reaffirmed a “sell” rating on shares of Imperial Oil in a research report on Tuesday, June 23rd. Desjardins upgraded Imperial Oil to a “hold” rating in a report on Thursday, July 16th. Scotiabank reissued a “sector perform” rating on shares of Imperial Oil in a research report on Friday, July 17th. TD Securities restated a “sell” rating on shares of Imperial Oil in a report on Wednesday, May 13th. Finally, Zacks Research raised shares of Imperial Oil from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus price target of $116.00.

About Imperial Oil

Imperial Oil (NYSEAMERICAN: IMO) is a Canadian integrated energy company involved in the exploration, production, refining and marketing of petroleum and petrochemical products. Headquartered in Calgary, Alberta, Imperial has operated in Canada for well over a century and is one of the country’s long-standing energy firms. The company is majority-owned by Exxon Mobil Corporation, which provides strategic and technical links to global upstream and downstream capabilities.

Imperial’s operations span upstream activities—exploration and production of crude oil, natural gas and oil-sands resources—and downstream operations including refining, manufacturing of fuels and lubricants, petrochemical products, and retail distribution.