$IMO

RBC Reaffirms Imperial Oil's Underperform Rating, C$124 Price Target

RBC Capital Markets on Friday reaffirmed Imperial Oil's (IMO.TO, IMO) underperform rating and C$124 price target following the release of the company's first-quarter results.Key takeaways from Imperial Oil's conference call include the company's cost optimization initiatives, with the company's restructuring resulting with roughly 130 employees departing in the first quarter.Imperial Oil also returned C$350 million to shareholders during the quarter via dividends. Its capital spending reached C$478 million, below RBC's forecast of C$525 million.The company indicated that it does not intend to alter the pace of capital investment this year despite a stronger commodity pricing backdrop.Price: $177.38, Change: $+2.78, Percent Change: +1.59%

Research Alert: CFRA Maintains Sell Opinion On Shares Of Imperial Oil Limited

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our target price to CAD145 (from CAD128), implying 9.0x EV to projected 2027 EBITDA, above the historical average. Shares are up ~55% year to date in 2026 and continue to trade at a significant premium relative to peers and its own historical multiple. As a result, while we like IMO's cost improvements and growth potential, we continue to think the upside is largely priced in at this point, and we recommend investors take profits. Valuation is at decade highs relative to peers and 1.7 standard deviations above its 10-year upper band. Share reduction has been aggressive and beneficial to shareholders; however, no shares were repurchased in Q1 2026. Q1 was a particularly weak quarter for IMO, with net income down 27% on a combination of flat production, weaker pricing realizations, a wider differential, and negative foreign exchange impacts. Operational execution of this quality will likely dent the aforementioned premium. We lift our 2026 EPS to CAD9.66 from CAD6.33 and 2027 EPS to CAD8.22 from CAD6.99.

Exchange-Traded Funds Higher, Equity Futures Mixed Amid Continued Earnings Results

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.3% and the actively traded Invesco QQQ Trust (QQQ) gained 0.1% in Friday's premarket activity, as earnings reports continued to pour in.US stock futures were mixed, with S&P 500 Index futures up 0.1%, Dow Jones Industrial Average futures gaining 0.3%, and Nasdaq futures slipping by 0.2% before the start of regular trading.The S&P Global US manufacturing purchasing managers index for April will be released at 9:45 am ET, followed by the ISM Manufacturing Index for April at 10 am ET.The weekly Baker Hughes domestic oil-and-gas rig count posts at 1 pm ET.In premarket action, bitcoin was up by 1.4%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 2.3% higher, Ether ETF (EETH) advanced 2.1%, and Bitcoin & Ether Market Cap Weight ETF (BETH) gained 1.6%.Power Play:ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.4% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was flat. The iShares US Consumer Staples ETF (IYK) was also flat. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.1%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was 0.5% higher.Estee Lauder (EL) shares were up more than 11% pre-bell after the company reported higher fiscal Q3 earnings and said it expects to eliminate between 9,000 and 10,000 positions as part of a revised profit recovery program.Winners and Losers:Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.4%, the Vanguard Health Care Index Fund (VHT) was up 1.2%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was flat.Moderna (MRNA) stock was up more than 3% premarket after the company reported a narrower-than-expected net loss and higher revenue.EnergyThe iShares US Energy ETF (IYE) was down 0.1%, while the State Street Energy Select Sector SPDR ETF (XLE) was 0.4% lower.Imperial Oil (IMO) stock was down more than 2% before Friday's opening bell after the company reported lower Q1 net income and revenue.FinancialThe State Street Financial Select Sector SPDR ETF (XLF) advanced 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) was up 1.3%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 1.1% lower.Aon (AON) shares were up 3% pre-bell after the company reported higher Q1 adjusted earnings and revenue.IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.4%, while the Vanguard Industrials Index Fund (VIS) gained 0.4% and the iShares US Industrials ETF (IYJ) was inactive.Gates Industrial (GTES) stock was up more than 3% before the opening bell after Timken (TKR) agreed to sell the assets of its belts business to Gates.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) advanced by 0.3%, and the iShares US Technology ETF (IYW) was 0.6% higher, while the iShares Expanded Tech Sector ETF (IGM) was down 0.03%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) declined by 0.4%, while the iShares Semiconductor ETF (SOXX) fell by 0.8%.Apple (AAPL) shares were up about 3% in premarket activity after the iPhone maker's fiscal Q2 results topped market estimates.CommoditiesFront-month US West Texas Intermediate crude oil fell by 2.6% to $102.31 per barrel on the New York Mercantile Exchange. Natural gas gained by 0.3% to $2.78 per 1 million British Thermal Units. The United States Oil Fund (USO) decreased by 2%, while the United States Natural Gas Fund (UNG) was 0.8% higher.Gold futures for May were down by 0.5% to $4,607.80 an ounce on the Comex. Silver futures added 1.5% to $75.31 an ounce. SPDR Gold Shares (GLD) was 0.5% lower, and the iShares Silver Trust (SLV) gained by 0.8%.

Sector Update: Energy Stocks Lean Lower Premarket Friday

Energy stocks were leaning lower premarket Friday, with the State Street Energy Select Sector SPDR ETF (XLE) declining by 0.3%.The United States Oil Fund (USO) was down 2.1% and the United States Natural Gas Fund (UNG) was 1.1% higher.Front-month US West Texas Intermediate crude oil was 1.3% lower at $103.71 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 0.3% to $110.77 per barrel, and natural gas futures were up 0.4% at $2.56 per 1 million British Thermal Units.Exxon Mobil (XOM) shares were down 0.7% after the company reported a decline in Q1 adjusted earnings.Chevron (CVX) stock was 0.8% lower after the company posted a decline in Q1 adjusted earnings, while revenue missed analysts' estimates.Imperial Oil (IMO) shares were down more than 2% after the company reported lower Q1 net income and revenue.

Research Alert: Imo Q1: Earnings Fall On Weak Differentials, Fx Woes, Flat Upstream Output

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:IMO Q1 net income declined 27% to CAD940M (CAD1.94/share) from CAD1,288M (CAD2.52/share) in the prior year, with revenues down 1% to CAD12.4B. The earnings decline was due to weaker commodity price realizations, wider WTI/WCS differential (CAD14.34 vs CAD12.59), and flat upstream production at 419k bpd, partially offset by improved downstream margins. Multiple operational hiccups including unplanned coker downtime at Syncrude and natural gas supply outages translated into significantly depressed cash flows that likely won't be well received by the market. The company increased its dividend 20% to CAD0.72/share and plans to renew its share buyback program in June 2026. FCF declined sharply to CAD306M from CAD1,150M as capex increased 20% to CAD478M. We note the balance sheet remains best in class, however pricing realizations and upstream production combined for a lackluster showing during a period that could have been greatly advantageous.

Imperial Oil's Q1 Net Income, Revenue Decline

Imperial Oil (IMO) reported Q1 net income Friday of 1.94 Canadian dollars ($1.43) per diluted share, compared with CA$2.52 a year earlier.Analysts surveyed by FactSet expected CA$2.30.Revenue for the quarter ended March 31 was CA$12.45 billion, compared with CA$12.52 billion a year earlier.Analysts surveyed by FactSet expected CA$11.98 billion.

Earnings Flash (IMO) Imperial Oil Posts Q1 EPS CA$1.94, vs. FactSet Est of CA$2.30

Earnings Flash (IMO) Imperial Oil Posts Q1 Total Revenue and Other Income CA$12.45B, vs. FactSet Est of CA$11.98B

Imperial Oil Maintained at Hold at TPH Ahead of Q1 Results; Price Target at C$150.00

Tudor, Pickering, Holt on Friday maintained its hold rating of the shares of Imperial Oil (IMO.TO, IMO) with a C$150 price target ahead of the oil producer and refiner's first-quarter results."With our pre-earnings model update this week, we increased our Q1'26 CFPS estimate to C$3.39 from our prior C$2.90, now above Street C$2.97 though recent estimates looking more in-line with current TPHe. While MTM factors aided across the board, Upstream stands out as the driver for our improved earnings estimates, with MTM factors for Downstream partially offset by a true up to or assumptions on capture rate," analyst Jeoffrey Lambujon wrote.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $178.16, Change: $+0.68, Percent Change: +0.38%