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Golar LNG (GLNG) to Report Q4 Earnings: What's in Store?

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Golar LNG (GLNG - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 29, before market open.

The Zacks Consensus Estimate for GLNG’s fourth-quarter 2023 earnings has been stable at 50 cents per share over the last 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 upbeat demand for liquefied natural gas (LNG) to have aided Golar LNG’s performance in the to-be-reported quarter. Moreover, amid the prolonged Russia-Ukraine war, Europe is likely to have sought gas supplies outside Russia. This is expected to have driven demand for LNG vessels.

On the flip side, GLNG’s performance is expected to have been affected by supply-chain disruptions. Higher operating expenses due to increased average number of vessels in its fleet are likely to have hurt the bottom line.

Moreover, high fuel costs might have affected the bottom-line performance in the quarter under review. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.

What Does the Zacks Model Say?

The proven Zacks model does not predict an earnings beat for GLNG 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, which is not the case here.

Earnings ESP:  Golar LNG has an Earnings ESP of 0.00% as the Most Accurate Estimate of 50 cents 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: Golar LNG currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Q4 Performances of Other Transportation Companies

Delta Air Lines’ (DAL - Free Report) fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. The bottom line, however, declined 13.5% on a year-over-year basis due to high labor costs.

Revenues of $14.22 billion surpassed the Zacks Consensus Estimate of $14.07 billion and increased 5.9% on a year-over-year basis driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13.66 billion, up 11% year over year.

United Airlines (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.

Operating revenues of $13.6 billion beat the Zacks Consensus Estimate of $13.5 billion. The top line increased 9.9% year over year due to upbeat air-travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.


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