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What's in the Offing for Golar LNG (GLNG) in Q1 Earnings?

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Golar LNG Limited (GLNG - Free Report) is slated to release first-quarter 2021 earnings numbers on May 20.

The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised downward by 27.3% in the last 60 days.

Against this backdrop, let’s take a look at the factors that are expected to have influenced the company’s performance in the first quarter.

Golar LNG Limited Price and EPS Surprise

Golar LNG Limited Price and EPS Surprise

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


The company’s first-quarter performance is expected to have benefited from impressive performance at FLNG (Floating Liquefied Natural Gas). Golar LNG anticipates its first-quarter 2021 results to be better than its fourth-quarter 2020 results, owing to stronger performance of the shipping fleet and upbeat operations from FLNG Hilli Episeyo.

Moreover, gradual increase in economic activities and improvement in global trade are likely to have aided the company’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for average daily Time Charter Equivalent rates in the first quarter indicates an approximate 23% rise from the fourth-quarter 2020’s reported figure.

Additionally, cost-cutting measures to combat coronavirus-related adversities are likely to have supported the company’s bottom line.

However, coronavirus-induced closure of a shipyard and significant reduction in fleet utilization might have affected Golar LNG’s top line in the to-be-reported quarter.

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 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 -51.52% as the Most Accurate Estimate is pegged at 4 cents, lower than the Zacks Consensus Estimate of 8 cents.

Zacks Rank: Golar LNG carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Q4 Highlights

Golar LNG’s fourth-quarter 2020 performance was hurt by lower revenues due to weak shipping results and reduced utilization. However, results benefited from impressive performance of FLNG Hilli Episeyo, which recorded 100% commercial uptime in the quarter.

Snapshots of Sectorial Releases

Below we present the first-quarter results of some companies within the Zacks Transportation sector.

Canadian National Railway Company (CNI - Free Report) , carrying a Zacks Rank #3 (Hold), reported first-quarter 2021 earnings (excluding 11 cents from non-recurring items) of 97 cents per share (C$1.23), missing the Zacks Consensus Estimate of 99 cents. Quarterly revenues of $2,791.6 million (C$3,535 million) lagged the Zacks Consensus Estimate of $2,813.1 million.

Landstar System (LSTR - Free Report) , sporting a Zacks Rank #1, reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus estimate of $1.61. Additionally, revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million.

Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank of 3, incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Meanwhile, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.

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