What's in the Cards for Golar LNG (GLNG) in Q2 Earnings?
Golar LNG Limited GLNG is scheduled to report second-quarter 2023 results on Aug 10, before market open.
The Zacks Consensus Estimate for GLNG’s second-quarter 2023 earnings has been revised 4.1% upward to 51 cents per share, over the last 60 days.
Given this backdrop, let’s delve deep to unearth the factors likely to have influenced GLNG’s performance in the quarter under discussion.
We expect upbeat demand for liquefied natural gas (LNG) to have aided Golar LNG’s performance in the to-be-reported quarter. Moreover, amid the prolonged Russia-Ukraine war, Europe is likely to have sought gas supplies outside Russia. This is expected to have driven demand for LNG vessels.
On the flip side, GLNG’s performance is expected to have been affected by supply-chain disruptions. Higher operating expenses due to the increased average number of vessels in its fleet are likely to have hurt the bottom line.
Moreover, high fuel costs might have affected the bottom-line performance in the quarter under review. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Golar LNG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: GLNG has an Earnings ESP of +18.81% (the Most Accurate Estimate is currently pegged at 60 cents per share, 9 cents above 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: Golar LNG currently carries a Zacks Rank #5 (Strong Sell).
Q2 Performance of Some Other Transportation Companies
American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million. Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front. Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #2.
United Airlines UAL, currently sporting a Zacks Rank #1, reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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