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KNOT Offshore (KNOP) to Report Q3 Earnings: What's in Store?

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KNOT Offshore Partners LP (KNOP - Free Report) is expected to report third-quarter 2018 results on Nov 2.

In the second quarter of 2018, this Aberdeen, Scotland-based Partnership delivered a positive earnings surprise of 40.4%. Results were driven by higher revenues.

Let’s see how things shape up for this announcement.

We expect the Partnership’s third-quarter results to be aided by high time charter and bareboat revenues. Also, inclusion of the shuttle tanker, Anna Knutsen, is expected to boost the quarterly performance. The vessel was acquired in March this year.

Additionally, improved utilization on scheduled operations for the fleet is expected to drive revenues in the soon-to-be-reported quarter. Distributable cash flow is also likely to increase sequentially, courtesy of increased contribution from the Brasil Knutsen vessel.

However, the five-year special survey drydocking of the Hilda Knutsen and Torill Knutsen vessels might hurt the Partnership’s third-quarter results. Vessel operating expenses are also expected to increase the third quarter, thereby weighing on the bottom line. Inclusion of Anna Knutsen results and bunkers consumption pertaining to the drydocking of vessels, which were offhire during the July-September period, is likely to push up costs.

KNOT Offshore Partners LP Price and EPS Surprise


Earning Whispers

Our proven model does not show that KNOT Offshore is likely to beat estimates this quarter. This is because a stock needs to have a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as elaborated below.

Earnings ESP: KNOT Offshore has an Earnings ESP of 0.00%. The Most Accurate Estimate is pegged at 63 cents per share 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: KNOT Offshore carries a Zacks Rank #2.

We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Upcoming Shipping Releases

Investors interested in the broader Transportation sector will also look forward to third-quarter earnings reports of Fly Leasing Limited (FLY - Free Report) and Copa Holdings S.A. (CPA - Free Report) on Nov 8 and Nov 14, respectively.

A Transportation Stock to Consider

Investors may consider Hertz Global Holdings, Inc (HTZ - Free Report) as it possesses the right combination of elements to come up with an earnings beat in its next release.

Hertz Global Holdings has an Earnings ESP of +13.48% and a Zacks Rank #2. The company will report third-quarter earnings on Nov 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

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