It has been about a month since the last earnings report for Golar LNG (GLNG). Shares have lost about 8.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Golar LNG due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Golar LNG Posts Q1 Loss, Revenues Beat
Golar LNG incurred a loss (excluding 95 cents from non-recurring items) of 8 cents per share in first-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 2 cents. However, the loss per share narrowed year over year.
Adjusted revenues of $117.7 million surpassed the Zacks Consensus Estimate of $108.6 million. Total operating revenues came in at $122.6 million. The top line also increased year over year, backed by an impressive performance at FLNG and strong seasonal results in shipping. Notably, FLNG Hilli Episeyo maintained its 100% commercial uptime in the quarter under review.
Revenues from vessel and other operations accounted for bulk (55.5%) of the company’s top line. FLNG revenues reflected the balance. Notably, Time and voyage charter revenues declined 19.8% sequentially. Additionally, Time Charter Equivalent (TCE) earnings climbed to $61,900 per day in the quarter under discussion compared with $39,300 in fourth-quarter 2019.
Vessel operating expenses of $30.2 million were flat sequentially. Total administrative expenses decreased 16.8% sequentially to $10.1 million due to lower legal, travel and employee stock compensation costs. Project development expenses increased marginally from fourth-quarter 2019 to $3.7 million.
The company, exited the first quarter with a cash balance of worth $303.4 million of which, $131 million was unrestricted cash. As of Mar 31, 2020, its total debt (current and non-current) was $2.56 billion. Golar LNG anticipates the coronavirus-induced demand weakness to weigh further on LNG prices, thereby causing more U.S. cargo cancellations.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a flat path over the past two months. The consensus estimate has shifted 37.11% due to these changes.
Currently, Golar LNG has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Golar LNG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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