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Can Cheniere (LNG) Pull Off a Strong Show in Q4 Earnings?
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Cheniere Energy, Inc. (LNG - Free Report) is set to release fourth-quarter results on Feb 22. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $2.70 per share on revenues of $4.5 billion.
Let’s delve into the factors that might have influenced the liquefied natural gas (“LNG”) exporter’s performance in the December quarter. But it’s worth taking a look at Cheniere Energy’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based transporter of super-chilled fuel underperformed the consensus mark on a lower-than-expected number of cargoes supplied. Cheniere Energy had reported adjusted earnings per share of $2.37, which missed the Zacks Consensus Estimate of $2.55. However, the company’s quarterly revenues of $4.2 billion beat the Zacks Consensus Estimate by 6.8% due to strong LNG sales.
LNG beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, resulting in an earnings surprise of 92%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates an 82.9% deterioration year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 50.5% decrease from the year-ago period.
Factors to Consider
LNG shipments for export from the United States have been robust for months on the back of environmental reasons, high prices of the super-chilled fuel elsewhere and the Russia-Ukraine conflict. This augurs well for Cheniere Energy — the dominant U.S. LNG exporter — in the to-be-reported quarter. As proof of this positive backdrop, the Zacks Consensus Estimate for fourth-quarter LNG volumes loaded is pegged at 548 trillion British thermal units (TBtu), the same as the quarter-ago level. This should have supported the company’s revenues and cash flows.
On a further bullish note, the fall in Cheniere Energy’s costs might have buoyed its to-be-reported bottom line. In the previous three-month period, the company’s cost of sales dropped a whopping 95% to $556 million, while total expenses fell 88.2%. This downtrend is likely to have continued in the fourth quarter as well due to LNG’s successful expense management initiatives.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Cheniere Energy this season. 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LNG has an Earnings ESP of +37.98% and a Zacks Rank #3.
Other Stocks to Consider
Cheniere Energy is not the only company looking up this earnings cycle. Here are some other firms that you may want to consider on the basis of our model:
Inter Parfums, Inc. (IPAR - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Inter Parfums indicates 8.6% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 45.7%, on average. Valued at around $4.9 billion, IPAR has gained 27.1% in a year.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 29.
Best Buy beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 12.8%, on average. Valued at around $15.9 billion, BBY has lost 11.9% in a year.
Alignment Healthcare, Inc. (ALHC - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Alignment Healthcare indicates 22.3% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 11.3%, on average. Valued at around $1.3 billion, ALHC has gone down 33.1% in a year.
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Can Cheniere (LNG) Pull Off a Strong Show in Q4 Earnings?
Cheniere Energy, Inc. (LNG - Free Report) is set to release fourth-quarter results on Feb 22. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $2.70 per share on revenues of $4.5 billion.
Let’s delve into the factors that might have influenced the liquefied natural gas (“LNG”) exporter’s performance in the December quarter. But it’s worth taking a look at Cheniere Energy’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based transporter of super-chilled fuel underperformed the consensus mark on a lower-than-expected number of cargoes supplied. Cheniere Energy had reported adjusted earnings per share of $2.37, which missed the Zacks Consensus Estimate of $2.55. However, the company’s quarterly revenues of $4.2 billion beat the Zacks Consensus Estimate by 6.8% due to strong LNG sales.
LNG beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, resulting in an earnings surprise of 92%, on average. This is depicted in the graph below:
Cheniere Energy, Inc. Price and EPS Surprise
Cheniere Energy, Inc. price-eps-surprise | Cheniere Energy, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates an 82.9% deterioration year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 50.5% decrease from the year-ago period.
Factors to Consider
LNG shipments for export from the United States have been robust for months on the back of environmental reasons, high prices of the super-chilled fuel elsewhere and the Russia-Ukraine conflict. This augurs well for Cheniere Energy — the dominant U.S. LNG exporter — in the to-be-reported quarter. As proof of this positive backdrop, the Zacks Consensus Estimate for fourth-quarter LNG volumes loaded is pegged at 548 trillion British thermal units (TBtu), the same as the quarter-ago level. This should have supported the company’s revenues and cash flows.
On a further bullish note, the fall in Cheniere Energy’s costs might have buoyed its to-be-reported bottom line. In the previous three-month period, the company’s cost of sales dropped a whopping 95% to $556 million, while total expenses fell 88.2%. This downtrend is likely to have continued in the fourth quarter as well due to LNG’s successful expense management initiatives.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Cheniere Energy this season. 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LNG has an Earnings ESP of +37.98% and a Zacks Rank #3.
Other Stocks to Consider
Cheniere Energy is not the only company looking up this earnings cycle. Here are some other firms that you may want to consider on the basis of our model:
Inter Parfums, Inc. (IPAR - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 27.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The 2024 Zacks Consensus Estimate for Inter Parfums indicates 8.6% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 45.7%, on average. Valued at around $4.9 billion, IPAR has gained 27.1% in a year.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 29.
Best Buy beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 12.8%, on average. Valued at around $15.9 billion, BBY has lost 11.9% in a year.
Alignment Healthcare, Inc. (ALHC - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Alignment Healthcare indicates 22.3% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 11.3%, on average. Valued at around $1.3 billion, ALHC has gone down 33.1% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.