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Is a Beat in Store For Golar LNG (GLNG) This Time Around?

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Golar LNG Limited (GLNG - Free Report) is slated to release fourth-quarter 2020 results on Feb 25.

The Zacks Consensus Estimate for the company’s fourth-quarter earnings has moved down 37.5% to 5 cents per share in the past 60 days. The bottom line outpaced the Zacks Consensus Estimate in one of the last three quarters (missing the same in one, while matching the same in the other). It has a trailing four-quarter negative earnings surprise of 93.33%, on average.

Given these backdrop, let’s take a look at the factors that are expected to have influenced the company’s performance in the quarter under review.

Golar LNG's operating revenues is likely to have increased during the fourth quarter aided by an impressive performance at FLNG (Floating Liquefied Natural Gas) and strong seasonal results in shipping.

Golar LNG Limited Price and EPS Surprise

 

Golar LNG Limited Price and EPS Surprise

Golar LNG Limited price-eps-surprise | Golar LNG Limited Quote

 

Moreover, the gradual resumption of economic activities and the resultant improvement in world trade is likely to have driven the top line in the fourth quarter compared with the September-quarter levels. Notably, the Zacks Consensus Estimate for Vessel and other Management fee revenues inched up 1% on a sequential basis, while the consensus estimate for Time and voyage charter revenues has increased 52% sequentially.

The company’s cost-cutting measures to combat coronavirus-related adversities are also expected to have contributed to the quarterly bottom line.

However, COVID-19 induced closure of the shipyard and significant reduction in fleet utilization is likely to have dented Golar LNG's December-end quarter’s performance.

Earnings Whispers

Our proven model shows that Golar LNG is likely to beat on earnings 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. However, that is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Golar LNG has an Earnings ESP of 50.00%. The Most Accurate Estimate is pegged at 8 cents, which is higher than the Zacks Consensus Estimate of 5 cents.

Zacks Rank: Golar LNG carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Q3 Highlights

Golar LNG incurred a loss (excluding 5 cents from non-recurring items) of 16 cents per share in third-quarter 2020, wider than the Zacks Consensus Estimate. Moreover, the metric increased 54% year over year. Low costs drove the bottom line. Adjusted revenues of $94.7 million surpassed the Zacks Consensus Estimate of $88.3 million. The top line declined 4% year over year, owing to COVID-19 induced closure of the shipyard of the shipyard where Golar Tundra was being dry-docked and significant reduction in fleet utilization.

Snapshots of Sectorial Releases

Below we present the fourth-quarter reports of other stocks in the Zacks Transportation sector.

Triton International Limited’s fourth-quarter 2020 earnings of $1.70 per share surpassed the Zacks Consensus Estimate of $1.42. Moreover, the bottom line surged 58.9% year over year owing to strong leasing demand and higher sale prices for used containers. Total leasing revenues of $337.3 million missed the Zacks Consensus Estimate of $350.5 million. The metric inched up 1.8% year over year with 2.6% rise in revenues from operating leases. Triton sports a Zacks Rank #1.

Expeditors International of Washington’s (EXPD - Free Report) fourth-quarter 2020 earnings of $1.16 per share surpassed the Zacks Consensus Estimate of $1.04 and surged 43.2% on a year-over-year basis. Also, the top line rose 55% year over year to $3,169.2 million but also surpassed the Zacks Consensus Estimate of $2,397 million. The uptick in airfreight revenues boosted results. Expeditors carry a Zacks Rank #3.

Norfolk Southern Corporation’s (NSC - Free Report) fourth-quarter 2020 earnings of $2.64 per share surpassed the Zacks Consensus Estimate of $2.48. Moreover, the bottom line increased 3.5% on a year-over-year basis on lower costs. The company’s railway operating revenues in the quarter under review came in at $2,573 million, outpacing the Zacks Consensus Estimate of $2,556.4 million. However, the top line declined 4.4% year over year due to 1% drop in total volumes and a 3% decline in revenue per unit. Norfolk Southern carry a Zacks Rank #3.

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