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What Awaits Dynagas LNG Partners (DLNG) in Q2 Earnings?

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Dynagas LNG Partners (DLNG - Free Report) is scheduled to release second-quarter 2020 results on Sep 3, 2020.

The partnership’s bottom line outperformed estimates in only one of the last four quarters and lagged the same in the other three. The average miss is 26%.

Dynagas LNG Partners LP Price and EPS Surprise

Dynagas LNG Partners LP Price and EPS Surprise

Dynagas LNG Partners LP price-eps-surprise | Dynagas LNG Partners LP Quote

For the to-be-reported quarter, the Zacks Consensus Estimate for earnings has increased 7.1% to 15 cents over the past 60 days. Against this backdrop, let’s take a look at the factors that might have shaped the company’s June-quarter performance.

Fleet utilization is expected to have been low in the second quarter due to coronavirus-induced disruptions. In fact, woes related to this deadly disease are likely to have impacted the company’s June-quarter performance more severely than the March quarter. This was because the entire three-month period (April to June) of the quarter to be reported bore the brunt of this pandemic-borne crisis compared to only a single month (March) in the first quarter.

Given the prevalence of coronavirus, multiple sailings were already canceled in the quarter. Moreover, vessels were rapidly idled. Consequently, voyage revenues are likely to have decreased in the to-be-reported quarter.

However, vessel operating expenses might have declined year over year in the June quarter, thereby aiding the company’s bottom line. This was mainly owing to lower expenses on maintenance and repair as many vessels were underutilized because of the pandemic in the three-month period ending Jun 30, 2020.

Earnings Whispers

Our proven model does not conclusively predict a bottom-line outperformance for Dynagas 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 a positive surprise. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Dynagas LNG 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: Dynagas LNG carries a Zacks Rank #3, currently.

Highlights of Q1

In first-quarter 2020, Dynagas LNG’s earnings of 12 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Moreover, total revenues of $34.5 million improved 9.8% year over year and also beat the Zacks Consensus Estimate of $33.1 million.

Snapshots of Sectorial Releases

Below we present the second-quarter reports of three companies in the Zacks Transportation sector, all stocks carrying a Zacks Rank #2, currently.

United Parcel Service’s (UPS - Free Report) second-quarter 2020 earnings (excluding 10 cents from non-recurring items) per share of $2.13 surpassed the Zacks Consensus Estimate of $1.04. The bottom line also improved 8.7% year over year. Results were aided by expanded residential delivery volumes amid the continued pandemic situation, which confined people to their homes. This apart, an increase in healthcare shipments and strong outbound demand from Asia led to the company’s outperformance.

UPS generated revenues worth $20,459 million in the quarter, outperforming the Zacks Consensus Estimate of $17,344.4 million. Moreover, the top line improved 13.4% on a year-over-year basis.

Canadian Pacific Railway Limited’s (CP - Free Report) second-quarter 2020 earnings (excluding 42 cents from non-recurring items) of $2.94 per share surpassed the Zacks Consensus Estimate of $2.75. However, quarterly earnings declined 8.4% year over year.

Quarterly revenues of $1,292.8 million lagged the Zacks Consensus Estimate of $1,299.9 million. The top line also fell 12.5% on a year-over-year basis due to depressed freight revenues.

Werner Enterprises (WERN - Free Report) delivered second-quarter 2020 earnings per share (excluding 6 cents from non-recurring items) of 62 cents, which surpassed the Zacks Consensus Estimate of 40 cents. However, the bottom line dipped 1.6% year over year. Moreover, total revenues of $569 million missed the Zacks Consensus Estimate of $580.8 million and also dropped 9.3% year over year due to soft fuel surcharge and weak logistics revenues.

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