09:48 AM EDT, 04/26/2024 (MT Newswires) -- Imperial Oil Ltd.'s ( IMO ) quarterly result reported Friday morning was considered a "lower-quality" miss by TD Securities.

"Q1/24 was another strong quarter operationally, with the FFOPS miss versus our estimates largely driven by higher-than-modelled cash taxes," analyst Menno Hulshof said in a note to clients.

"We consider the miss 'lower-quality' and therefore expect IMO shares to trade relatively in line on these results, if not slightly outperform," Hulshof said.

"The FFOPS miss vesus our estimates was primarily driven by higher-than-expected cash taxes ($165 Million deferred tax headwind related to higher crude-realizations)," the analyst said. "We therefore characterize the miss as lower-quality."

Hulshof maintained a Hold rating and $89 price target on the stock.

Imperial Oil ( IMO ) declined $0.77, or 0.8%, to $96.59 on the Toronto Stock Exchange in early trading.

(MT Newswires 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.mtnewswires.com/contact-us)

Price: 96.04, Change: -1.32, Percent Change: -1.36