U.S. Markets closed

Nordic American Tankers (NAT) May Report Negative Earnings: Know the Trend Ahead of Q1 Release

Zacks Equity Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Nordic American Tankers (NAT) reports results for the quarter ended March 2019. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This tanker company is expected to post quarterly loss of $0.00 per share in its upcoming report, which represents a year-over-year change of +100%.

Revenues are expected to be $49.84 million, up 68.3% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 46.43% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Nordic American Tankers?

For Nordic American Tankers, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -300%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Nordic American Tankers will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Nordic American Tankers would post a loss of $0.01 per share when it actually produced a loss of $0.05, delivering a surprise of -400%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Nordic American Tankers doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nordic American Tankers Limited (NAT) : Free Stock Analysis Report
To read this article on Zacks.com click here.

  • Where Will AK Steel Be in 5 Years?
    Motley Fool

    Where Will AK Steel Be in 5 Years?

    Despite already falling 45% over the past year, the investing community still isn't optimistic about the company's future -- AK Steel's PE ratio is just 4.5. While AK Steel gets a bad rap for being in an unexciting "old" economy business, the company is rapidly innovating in order to meet the future needs of steel customers, especially the auto sector. One of the main risks for AK Steel is that it generates almost two-thirds of its revenue from the North American auto market, and two major customers -- Ford (NYSE: F) and Fiat Chrysler (NYSE: FCAU) -- account for more than 10% of its revenue.

  • Baidu beats estimates on strong video streaming growth

    Baidu beats estimates on strong video streaming growth

    Chinese technology group Baidu on Monday posted a revenue of 26.33 billion yuan ($3.73 billion) for the quarter that ended in June, beating analysts' estimates of 25.77 billion yuan ($3.65 billion) as its video streaming service iQiyi continues to see strong growth. "With Baidu traffic growing robustly and our mobile ecosystem continuing to expand, we are in a good position to focus on capitalizing monetization and ROI improvement opportunities to deliver shareholder value," Herman Yu, CFO of Baidu, said in a statement. Today's results for Baidu, which has been struggling of late, should help calm investors' worries.

  • What Kind Of Shareholder Appears On The Altria Group, Inc.'s (NYSE:MO) Shareholder Register?
    Simply Wall St.

    What Kind Of Shareholder Appears On The Altria Group, Inc.'s (NYSE:MO) Shareholder Register?

    Every investor in Altria Group, Inc. (NYSE:MO) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

  • CNBC’s Jim Cramer: It’s a trap!

    CNBC’s Jim Cramer: It’s a trap!

    If you're frantically buying or selling stocks based on what the inversion and the subsequent uninversion of the yield curve is signalling, Jim Cramer has a message for you: Calm down. That's Cramer questioning the wisdom of traders who seem to be reacting to every headline popping up in the financial news cycle these days. Specifically, the television personality and former hedge-fund manager was talking about how stocks were hit hard Wednesday after the 10-year Treasury yield (BX:TMUBMUSD10Y)briefly inverted and slipped below the 2-year yield for the first time since before the 2008 financial crisis.

  • Business

    UPDATE 1-Brazil securities regulator ramps up Vale dam disaster probe

    Brazil's securities regulator CVM said on Monday it has opened up an additional investigation into whether executives of iron ore miner Vale SA breached their fiduciary duties in relation to a January dam collapse which killed nearly 250 people. The investigation is related to an initial administrative probe opened on Jan. 28, when CVM started looking into potential violations of securities laws over the incident. The securities body, which has the power to impose fines and bar executives from working at listed companies in Brazil, added the investigation does not concern environmental issues, which it said other agencies are looking into.

  • Business
    Fox Business

    Warren Buffett's Berkshire Hathaway seeks 'elephant-sized acquisition': Here are some options

    Warren Buffett has more cash than ever, and he's on the hunt for his next big purchase. Buffett's Berkshire Hathaway reported a record $122 billion of cash on its books last quarter, which the legendary investor has said is “far beyond” the level he prefers. In his most recent letter to shareholders, Buffett told investors he was looking for an “elephant-sized acquisition,” but that things were too expensive for his liking.

  • 10 Marijuana Stocks Wall Street Thinks Will Double
    Motley Fool

    10 Marijuana Stocks Wall Street Thinks Will Double

    Here you'll see just how much these 10 marijuana stocks would need to increase to hit Wall Street's consensus price target. MedMen Enterprises: 196% upside You might be surprised to learn that among the dozens of well-known pot stocks to choose from, upscale dispensary operator MedMen Enterprises (OTC: MMNFF) is furthest from Wall Street's price target, which implies an almost tripling in value. MedMen certainly has a knack for normalizing the cannabis buying experience, is set to entrench itself in big markets like California and Florida, and will double its state-based reach when its acquisition of PharmaCann closes.

  • Business
    Motley Fool

    Why Zscaler, Palo Alto Networks, and PG&E Slumped Today

    Several individual stocks fell sharply, including Zscaler (NASDAQ: ZS), Palo Alto Networks (NYSE: PANW), and PG&E (NYSE: PCG). Shares of Zscaler fell 11.3% after OTR Global downgraded the cloud-based cybersecurity specialist to "negative" from "mixed." To justify its relative bearishness, the analyst cited channel checks with Zscaler partners that showed concerns over increasing competition and discouraging sales trends. It certainly doesn't help that Zscaler stock had more than doubled so far in 2019 as of Friday's close, leaving it up more than 400% from its early 2018 IPO at $16 per share.

  • 7 Vanguard Funds for Conservative Investors

    7 Vanguard Funds for Conservative Investors

    One of the great things about Vanguard, aside from the low costs, is that when the issuer's index, mutual, and exchange traded fund (ETF) lineups are added, there are plenty of choices for wide varieties of investors, including those on the more risk-averse side of the ledger. Of course, costs, as in low costs, are one of the biggest reasons why Vanguard is a behemoth in the index fund universe and the second-largest U.S. ETF issuer.

  • Fmr. GE Vice Chairman Bob Wright on Markopolos report: It's like bringing out old laundry
    Yahoo Finance Video

    Fmr. GE Vice Chairman Bob Wright on Markopolos report: It's like bringing out old laundry

    General Electric's vice president of investor relations releases a statement on Harry Markopolos's report, accusing the company of committing a $38 billion fraud scheme by hiding its losses. Akiko Fujita and former Vice Chairman of General Electric, Bob Wright discuss.

  • Nearly 2 years into early retirement, here’s all that I’ve gotten wrong

    Nearly 2 years into early retirement, here’s all that I’ve gotten wrong

    Studies have shown it is very difficult to predict recessions, interest rates or financial markets. We need to predict future political conditions that will affect tax rates, the health-insurance marketplace and Social Security. Most political “experts” couldn't accurately predict the outcome of our last presidential election the day before it occurred.

  • Etsy (NASDAQ:ETSY) Shareholders Have Enjoyed An Impressive 274% Share Price Gain
    Simply Wall St.

    Etsy (NASDAQ:ETSY) Shareholders Have Enjoyed An Impressive 274% Share Price Gain

    It might be of some concern to shareholders to see the Etsy, Inc. (NASDAQ:ETSY) share price down 20% in the last month. Indeed, the share price is up a very strong 274% in that time. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

  • Virgin plastic pellets are the biggest pollution disaster you’ve never heard of

    Virgin plastic pellets are the biggest pollution disaster you’ve never heard of

    Some 30 miles north of Pittsburgh, Pennsylvania, in a township adjacent to a state forest, oil and gas giant Royal Dutch Shell is building a sprawling new plant to support what it sees as the future of its business: making millions of tons of new, virgin plastic. US president Donald Trump visited the facility last week, highlighting the 5,000 construction jobs it has created. Shell, along with other major oil and gas companies like Exxon, sees plastic as one avenue for growth as natural gas prices plummet—and, longer-term, as a way to weather the world's slow rejection of fossil fuels as an energy source.

  • Business

    How To Protect Your Mortgage

    That requires escrowing funds to pay property taxes and homeowners' insurance. You may also have homeowners' association or condo fees included in your mortgage payment, but not usually. The principle and interest for a fixed-term mortgage is rather straightforward.

  • Is ExxonMobil a Buy?
    Motley Fool

    Is ExxonMobil a Buy?

    ExxonMobil (NYSE: XOM) has struggled in recent years. Shares are down about 20% over the past three years because of continued volatility in the oil market and the company's struggle to grow production and earnings. Exxon, however, has a plan to turn things around.

  • CenturyLink Cobbles Together a Decent Second Quarter
    Motley Fool

    CenturyLink Cobbles Together a Decent Second Quarter

    Yet there's hope, as second-quarter revenue notched only a small drop from the previous quarter and the company is getting ready to make some infrastructure investments that could pay off down the road. The stock certainly isn't for those who don't like risk, but some reasons for cautious optimism might be emerging. The top and bottom lines are moving in opposite directions Revenue in the second quarter of 2019 fell 5.5% year over year as sales across all of CenturyLink's segments declined save for in the international and global accounts segment, where revenue was flat.

  • Has J.C. Penney Finally Hit Rock Bottom?
    Motley Fool

    Has J.C. Penney Finally Hit Rock Bottom?

    J.C. Penney (NYSE: JCP) has burned many investors over the past three years as its stock lost over 90% of its value. Let's see if those improvements indicate that J.C. Penney's stock has finally bottomed out. J.C. Penney's revenue fell 7% annually to $2.62 billion, which matched analysts' expectations.

  • Why the decline in RV sales could be an economic warning sign
    Yahoo Finance Video

    Why the decline in RV sales could be an economic warning sign

    Elkhart, Indiana -- capital of the country's recreational-vehicle industry -- is seeing a drop in RV shipments. Shipments are down 20% so far this year, after a 4.1% drop last year, according to data from the RV Industry Association. So - is the RV industry a barometer for the health of the u.s.

  • Southwest ending some Oklahoma, California and Florida routes out of Love Field
    American City Business Journals

    Southwest ending some Oklahoma, California and Florida routes out of Love Field

    Southwest Airlines will stop flying routes to Oklahoma City, San Francisco and Jacksonville, Fla., out of Dallas Love Field starting Jan. 6, 2020 as the carrier continues to alter its network. The changes come as Southwest Airlines Co. (NYSE: LUV) extended its flight schedule last week through March 6, 2020. "We are making some changes in some markets based on extensive performance reviews to end nonstop service between these city pairs," said Dan Landson, a Southwest spokesperson.

  • Why Argentine Financial Stocks Just Took Another Turn for the Worse
    Motley Fool

    Why Argentine Financial Stocks Just Took Another Turn for the Worse

    Argentina's stock market suffered mightily last week, as investors worried that voters might oust current President Mauricio Macri in favor of his socialist/Peronist challengers Alberto Fernandez and Cristina Kirchner in the upcoming October elections. Now, though, there's a new worry to, well, worry about: Argentina may not even make it to October. In today's Argentina stock market update, we find financial stocks Grupo Supervielle S.A. (NYSE: SUPV) trading down 7.6% as of 10:35 a.m. EDT, Banco Macro S.A. (NYSE: BMA) off 9.6%, and Grupo Financiero Galicia (NASDAQ: GGAL) down 11.3%.

  • 5 Top Pipeline Stocks to Buy Now
    Motley Fool

    5 Top Pipeline Stocks to Buy Now

    Pipeline stocks can be attractive investments, especially for income seekers. According to a forecast by the INGAA Foundation, which represents the natural-gas pipeline industry, North America needs to spend $44 billion per year through 2035 on new energy infrastructure like pipelines. Given that dividend growth stocks have historically outperformed the market, the best pipeline stocks could generate market-beating total returns.

  • Why Weibo Shares Jumped 15% Today
    Motley Fool

    Why Weibo Shares Jumped 15% Today

    Shares of Weibo (NASDAQ: WB) rose as much as 15.6% on Monday, following a strong second-quarter earnings report. As of 3:30 p.m. EDT, the Chinese social media company's stock had settled down to a 14.8% gain. Your average Wall Street analyst had been expecting Weibo to report earnings near $0.59 per share on revenue in the neighborhood of $429 million.

  • Does Colgate-Palmolive (NYSE:CL) Have A Healthy Balance Sheet?
    Simply Wall St.

    Does Colgate-Palmolive (NYSE:CL) Have A Healthy Balance Sheet?

    Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company.

  • Aurora Cannabis Acquires Hempco Food and Fiber
    Market Realist

    Aurora Cannabis Acquires Hempco Food and Fiber

    Aurora Cannabis (ACB) was trading lower early this morning after falling about 8% last week alone. Aurora and its peers came under pressure after Canopy Growth (WEED)(CGC) reported dismal earnings. Earlier today, Aurora announced it had completed its acquisition of all of Hempco Food and Fiber's outstanding common shares, valued at about 63.4 million Canadian dollars.

  • Canopy Growth Falls to Its Lowest Point in 2019
    Market Realist

    Canopy Growth Falls to Its Lowest Point in 2019

    Today, Canopy Growth (WEED) (CGC) stock saw its lowest point in 2019. This was the lowest point for the stock since the beginning of the year. Decline since April The decline in Canopy Growth stock began in April this year after it reached a peak of $52.7.