KNOT Offshore (KNOP) to Report Q4 Earnings: What's in Store?
KNOT Offshore Partners LP KNOP is expected to report its fourth-quarter 2023 results on Feb 27, before market open.
KNOP beat the Zacks Consensus Estimate in two of the last four quarters (missing the mark in the other two). The average beat is 269.9%. The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter has remained stable at 7 cents over the past 30 days.
KNOT Offshore Partners LP Price and EPS Surprise
KNOT Offshore Partners LP price-eps-surprise | KNOT Offshore Partners LP Quote
Against this backdrop, let’s take a look at the factors that may have shaped the partnership’s December-quarter performance.
We expect KNOT Offshore’s results to reflect bullishness surrounding the tanker market as product tanker rates are currently at healthy levels despite minor hiccups. Also, normalization of economic activities and an uptick in world trade following the removal of COVID-19-induced restrictions are expected to have boosted KNOP’s top-line performance.
The recent attacks by Yemen’s Houthi militants on vessels in the Red Sea have disrupted maritime trade. As a result, many shipping companies, including ASC, have hit the pause button as far as transit through this route is concerned.
Keeping the safety of the crew in mind, KNOP is adopting the longer and costlier route around Cape of Good Hope in South Africa rather than through the Suez Canal. Reduced container availability due to the Red Sea tensions has resulted in a rise in freight rates. Lower capacity is expected to have boosted earnings. However, costs are likely to have been steep due to a rise in oil prices and supply-chain troubles.
What Does the Zacks Model Say?
The proven Zacks model does not conclusively predict an earnings beat for KNOP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here.
Earnings ESP: KNOT Offshore has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: KNOT Offshore currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Q4 Performances of Other Transportation Companies
Delta Air Lines’ DAL fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.5% on a year-over-year basis due to high labor costs.
Revenues of $14.22 billion surpassed the Zacks Consensus Estimate of $14.07 billion and increased 5.9% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13.66 billion, up 11% year over year.
United Airlines UAL reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13.6 billion beat the Zacks Consensus Estimate of $13.5 billion. The top line increased 9.9% year over year due to upbeat air travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.
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