Back to top

Image: Bigstock

Euronav (EURN) to Post Q1 Earnings: What's in the Offing?

Read MoreHide Full Article

Euronav NV (EURN - Free Report) is scheduled to report first-quarter 2020 results on May 7.

The company’s earnings outshined the Zacks Consensus Estimate in three of the last four quarters, while missing in the other one. The average beat is 8.2%.

Euronav NV Price and EPS Surprise

 

Euronav NV Price and EPS Surprise

Euronav NV price-eps-surprise | Euronav NV Quote

Moreover, the Zacks Consensus Estimate for first-quarter earnings has been revised 18.8% downward over the past 60 days.

Against this backdrop, let’s examine the factors that are likely to have impacted the company’s March-quarter performance.

Euronav’s first-quarter performance is expected to have been affected by coronavirus-induced supply-chain disruptions. Notably, the coronavirus pandemic spelt doom for the shipping industry, which is responsible for transporting the majority of goods involved in world trade and is rightfully considered the life line of the global economy. Moreover, the adoption of IMO 2020 might have also adversely impacted the performance due to some short-term disturbance in the shipping network.

However, oil tanker rates are expected to have been high in the March quarter. The company's impending quarterly results might reflect this increase. The plunge in oil prices (down 66.5%) in the January-March period is a bonus and is likely to have supported the bottom line in the to-be-reported quarter.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat forEuronav 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 a positive surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Euronav has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Euronav carries a Zacks Rank #2, currently.

Highlights of Q4 Earnings

In the last reported quarter, Euronav’s earnings of 75 cents per share surpassed the Zacks Consensus Estimate of 68 cents. Moreover, the bottom line skyrocketed more than 100% on a year-over-year basis. However, quarterly revenues of $320 million missed the consensus mark of $353 million.

Stocks to Consider

Investors interested in the transportation space may consider Golar LNG Limited (GLNG - Free Report) , JetBlue Airways Corporation (JBLU - Free Report) and Hawaiian Holdings, Inc. (HA - Free Report) as these stocks have the right combination of elements to beat on earnings this reporting cycle.

Golar LNG has an Earnings ESP of +1000.09% and a Zacks Rank of 2.

JetBlue has an Earnings ESP of +0.41% and a Zacks Rank #3. The company will report first-quarter 2020 earnings on May 7.

 Hawaiian Holdings has an Earnings ESP of +15.21% and a Zacks Rank of 3. The company will report first-quarter 2020 earnings on May 5.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>