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Shipping Stocks to Report Earnings on Feb 28: GLNG, SFL, FRO
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The Q4 earnings season is on its last leg with quarterly reports already out for the majority of companies (approximately 92% of the S&P 500 companies have already reported). In fact, the current reporting cycle has thrown up a very encouraging picture. The S&P500 space is expected to end Q4 with a healthy growth rate of 7.4% and 3.9%, bottom line and top line, respectively. The readings are much more favorable than those of Q3, wherein earnings expanded 3.7% and revenues grew merely 2.2%.
In fact, Q3 was the first reporting cycle to see earnings growth after five consecutive quarters of bottom-line contraction. The good work has been carried on and improved in Q4. Naturally, with the overall picture being so impressive, it is of little wonder that most of the 16 Zacks sectors have fared very well, especially with respect to the bottom line in the current reporting cycle.
Unfortunately, this does not hold true for the widely-diversified transportation sector. In fact, we have already seen players like United Continental Holdings (UAL - Free Report) , Ryder System (R - Free Report) and Kansas City Southern reporting significant year-over-year bottom-line decline in the Q4.
Increasing labor costs have hurt the bottom line for most of the sector participants, particularly airlines. Additionally, other headwinds like driver shortages are hurting this sector.
Though the majority of transportation stocks have already reported their quarterly numbers, a few are yet to unveil their financial reports. Most of these companies are from the shipping space.
Shipping companies too have been facing headwinds like low freight rates and weak financial position, to name a few. Given this backdrop, investors interested in the shipping space will keenly await reports from players like Golar LNG Limited (GLNG - Free Report) , Ship Finance International Limited (SFL - Free Report) and Frontline Ltd. (FRO - Free Report) on Feb 28.
According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Based in Hamilton, Bermuda, Golar LNG focuses on the acquisition, ownership, operation and chartering of liquid natural gas carriers and floating storage re-gasification units. The company carries a Zacks Rank #3 and an Earnings ESP of -8.11%. This unfavorable combination makes an earnings beat highly unlikely for the company in Q4.
Now, let’s see what’s in store for Ship Finance International Limited, which is based in Hamilton, Bermuda. The company boasts one of the largest fleet in the world and most of the vessels are employed on medium- or long-term charters. It carries a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00% (as the Most Accurate estimate is in line with the Zacks Consensus Estimate of 36 cents). In fact, the company’s 0.00% Earnings ESP makes an earnings beat unlikely in Q4, despite the favorable Zacks Rank. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Ship Finance International Limited Price and EPS Surprise
Finally, Frontline Ltd. is a provider of seaborne transportation of crude oil and oil products based in Hamilton, Bermuda. The company carries a Zacks Rank #3 and an Earnings ESP of 0.00% (as the Most Accurate estimate is in line with the Zacks Consensus Estimate of 8 cents). However, the company’s 0.00% Earnings ESP makes earnings beat unlikely in Q4, despite the favorable Zacks Rank.
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Shipping Stocks to Report Earnings on Feb 28: GLNG, SFL, FRO
The Q4 earnings season is on its last leg with quarterly reports already out for the majority of companies (approximately 92% of the S&P 500 companies have already reported). In fact, the current reporting cycle has thrown up a very encouraging picture. The S&P500 space is expected to end Q4 with a healthy growth rate of 7.4% and 3.9%, bottom line and top line, respectively. The readings are much more favorable than those of Q3, wherein earnings expanded 3.7% and revenues grew merely 2.2%.
In fact, Q3 was the first reporting cycle to see earnings growth after five consecutive quarters of bottom-line contraction. The good work has been carried on and improved in Q4. Naturally, with the overall picture being so impressive, it is of little wonder that most of the 16 Zacks sectors have fared very well, especially with respect to the bottom line in the current reporting cycle.
Unfortunately, this does not hold true for the widely-diversified transportation sector. In fact, we have already seen players like United Continental Holdings (UAL - Free Report) , Ryder System (R - Free Report) and Kansas City Southern reporting significant year-over-year bottom-line decline in the Q4.
Increasing labor costs have hurt the bottom line for most of the sector participants, particularly airlines. Additionally, other headwinds like driver shortages are hurting this sector.
Though the majority of transportation stocks have already reported their quarterly numbers, a few are yet to unveil their financial reports. Most of these companies are from the shipping space.
Shipping companies too have been facing headwinds like low freight rates and weak financial position, to name a few. Given this backdrop, investors interested in the shipping space will keenly await reports from players like Golar LNG Limited (GLNG - Free Report) , Ship Finance International Limited (SFL - Free Report) and Frontline Ltd. (FRO - Free Report) on Feb 28.
According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Based in Hamilton, Bermuda, Golar LNG focuses on the acquisition, ownership, operation and chartering of liquid natural gas carriers and floating storage re-gasification units. The company carries a Zacks Rank #3 and an Earnings ESP of -8.11%. This unfavorable combination makes an earnings beat highly unlikely for the company in Q4.
Golar LNG Limited Price and EPS Surprise
Golar LNG Limited Price and EPS Surprise | Golar LNG Limited Quote
Now, let’s see what’s in store for Ship Finance International Limited, which is based in Hamilton, Bermuda. The company boasts one of the largest fleet in the world and most of the vessels are employed on medium- or long-term charters. It carries a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00% (as the Most Accurate estimate is in line with the Zacks Consensus Estimate of 36 cents). In fact, the company’s 0.00% Earnings ESP makes an earnings beat unlikely in Q4, despite the favorable Zacks Rank. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Ship Finance International Limited Price and EPS Surprise
Ship Finance International Limited Price and EPS Surprise | Ship Finance International Limited Quote
Finally, Frontline Ltd. is a provider of seaborne transportation of crude oil and oil products based in Hamilton, Bermuda. The company carries a Zacks Rank #3 and an Earnings ESP of 0.00% (as the Most Accurate estimate is in line with the Zacks Consensus Estimate of 8 cents). However, the company’s 0.00% Earnings ESP makes earnings beat unlikely in Q4, despite the favorable Zacks Rank.
Frontline Ltd. Price and EPS Surprise
Frontline Ltd. Price and EPS Surprise | Frontline Ltd. Quote
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>