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DHT Holdings (DHT) to Report Q4 Earnings: What's in Store?
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DHT Holdings (DHT - Free Report) is scheduled to release fourth-quarter 2022 earnings on Feb 8, after market close.
The company has a mixed earnings record of beating the Zacks Consensus Estimate twice in the last four quarters while missing twice. The average beat is 75.69%.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved 8.11% south over the past 60 days.
Against this backdrop, let’s take a look at the factors that might have shaped the company’s December-quarter performance.
We expect DHT Holdings’ performance in the to-be-reported quarter to have been aided by the recovery in the overall shipping market as economic activities pick up pace with the easing of COVID-related restrictions. Favorable tanker rates are expected to have boosted the top line.
Management expects fourth-quarter 2022 charter equivalent or TCE earnings for its fleet to be $56,900 per day. The forecast on TCE earnings comprises $36,100 per day for VLCCs (very large crude carriers) on time-charter, and $63,800 per day for VLCCs operating in the spot market.
Management also stated that so far in the first quarter of the current year, 37% of the available VLCC spot days have been booked at an average rate of $70,000 per day on a discharge-to-discharge basis, with 53% of the available VLCC days, spot and time-charter days combined, being booked at an average rate of $52,000 per day.
Although economic activities picked up from the pandemic gloom, supply-chain disruptions continue to dent shipping stocks like DHT. Increased operating costs have also been limiting bottom-line growth.
Costs are likely to have been steep in fourth-quarter 2022 at DHT due to supply-chain troubles. The spike in fuel costs is also likely to have flared up operating expenses.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DHT 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, since our model shows that these stocks have the right combination of elements to beat on their fourth-quarter 2022 earnings.
Ardmore Shipping (ASC - Free Report) currently has an Earnings ESP of +18.92% and flaunts a Zacks Rank #1. ASC will release fourth-quarter 2022 results on Feb 14.
The Zacks Consensus Estimate for earnings is currently pegged at is $1.11 per share, indicating an increase of 1.8% over the past 30 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters (reported in-line once), the average beat being 17.42%.
Expeditors International of Washington (EXPD - Free Report) currently has an Earnings ESP of +9.04% and a Zacks Rank of 3. EXPD will release fourth-quarter 2022 results on Feb 21.
The company has a current Zacks Consensus Estimate of $1.88, which has been revised 8.67% upward in the past 60 days. EXPD has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 22.1%.
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DHT Holdings (DHT) to Report Q4 Earnings: What's in Store?
DHT Holdings (DHT - Free Report) is scheduled to release fourth-quarter 2022 earnings on Feb 8, after market close.
The company has a mixed earnings record of beating the Zacks Consensus Estimate twice in the last four quarters while missing twice. The average beat is 75.69%.
DHT Holdings, Inc. Price and EPS Surprise
DHT Holdings, Inc. price-eps-surprise | DHT Holdings, Inc. Quote
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved 8.11% south over the past 60 days.
Against this backdrop, let’s take a look at the factors that might have shaped the company’s December-quarter performance.
We expect DHT Holdings’ performance in the to-be-reported quarter to have been aided by the recovery in the overall shipping market as economic activities pick up pace with the easing of COVID-related restrictions. Favorable tanker rates are expected to have boosted the top line.
Management expects fourth-quarter 2022 charter equivalent or TCE earnings for its fleet to be $56,900 per day. The forecast on TCE earnings comprises $36,100 per day for VLCCs (very large crude carriers) on time-charter, and $63,800 per day for VLCCs operating in the spot market.
Management also stated that so far in the first quarter of the current year, 37% of the available VLCC spot days have been booked at an average rate of $70,000 per day on a discharge-to-discharge basis, with 53% of the available VLCC days, spot and time-charter days combined, being booked at an average rate of $52,000 per day.
Although economic activities picked up from the pandemic gloom, supply-chain disruptions continue to dent shipping stocks like DHT. Increased operating costs have also been limiting bottom-line growth.
Costs are likely to have been steep in fourth-quarter 2022 at DHT due to supply-chain troubles. The spike in fuel costs is also likely to have flared up operating expenses.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DHT 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DHT has an Earnings ESP of 0.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, since our model shows that these stocks have the right combination of elements to beat on their fourth-quarter 2022 earnings.
Ardmore Shipping (ASC - Free Report) currently has an Earnings ESP of +18.92% and flaunts a Zacks Rank #1. ASC will release fourth-quarter 2022 results on Feb 14.
The Zacks Consensus Estimate for earnings is currently pegged at is $1.11 per share, indicating an increase of 1.8% over the past 30 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters (reported in-line once), the average beat being 17.42%.
Expeditors International of Washington (EXPD - Free Report) currently has an Earnings ESP of +9.04% and a Zacks Rank of 3. EXPD will release fourth-quarter 2022 results on Feb 21.
The company has a current Zacks Consensus Estimate of $1.88, which has been revised 8.67% upward in the past 60 days. EXPD has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 22.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.