DHT Holdings (DHT) to Report Q2 Earnings: What's in Store?

DHT Holdings DHT is scheduled to release second-quarter 2020 earnings results on Aug 10, 2020, after market close.

The company has a disappointing earnings record devoid of a single bottom-line beat in the last four quarters. Its earnings missed the Zacks Consensus Estimate twice and matched the same in the remaining two quarters. The average miss is 11.3%

DHT Holdings, Inc. Price and EPS Surprise

DHT Holdings, Inc. Price and EPS Surprise

DHT Holdings, Inc. price-eps-surprise | DHT Holdings, Inc. Quote

The Zacks Consensus Estimate for the company’s to-be-reported quarter’s earnings has moved 6.8% south over the past 60 days.

Against this backdrop, let’s take a look at the factors that might have shaped the company’s June-quarter performance.

We expect the company’s performance to have been hurt by low tanker rates in the April-June period. Consequently, shipping revenues are expected to have been low. Notably, oil prices rebounded in the second quarter from the rock-bottom levels of the first quarter of the year. This might have weakened the tanker rates.

Moreover, coronavirus-induced delays in discharging cargoes at ports following the reduced consumption of refined oil products are likely to have affected the company’s performance in the to-be-reported quarter. However, total operating expenses are expected to have fallen in the June quarter, mainly owing to decreased vessel operating costs, which in turn, might have aided bottom-line growth.

What Does the Zacks Model Unveil?

Our proven model does not predict an earnings beat for DHT Holdings 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. However, that is not the case here as described below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: DHT Holdings has an Earnings ESP of +4.29% as the Most Accurate Estimate of 85 cents is higher than the Zacks Consensus Estimate by 3 cents You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank:  DHT Holdings carries a Zacks Rank #5 (Strong Sell), currently.

Highlights of Q1 Earnings

DHT Holdings’ first-quarter earnings of 44 cents per share fell short of the Zacks Consensus Estimate of 55 cents. However, the bottom line improved more than 100% on a year-over-year basis. Further, total revenues of $152.5 million outpaced the Zacks Consensus Estimate of $150.1 million and also jumped in excess of 100% year over year.

Snapshots of Sectorial Releases

Below we present the second-quarter reports of three top-ranked companies in the Zacks Transportation sector.

Canadian National Railway Company’s CNI second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) met the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year.

Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and also fell 21.8% year over year. This downtick was primarily caused by COVID-19-led lower volumes across most commodity groups and lower fuel surcharge rates. The company carries a Zacks Rank #2, presently.

Canadian Pacific Railway Limited’s CP second-quarter 2020 earnings (excluding 42 cents from non-recurring items) of $2.94 (C$4.66) per share surpassed the Zacks Consensus Estimate of $2.75. However, quarterly earnings declined 8.4% year over year.

Quarterly revenues of $1,292.8 million (C$1,792) lagged the Zacks Consensus Estimate of $1,299.9 million. The top line also fell 12.5% on a year-over-year basis due to depressed freight revenues. The company presently carries a Zacks Rank of 2.

Werner Enterprises WERN delivered second-quarter 2020 earnings per share (excluding 6 cents from non-recurring items) of 62 cents, which surpassed the Zacks Consensus Estimate of 40 cents. However, the bottom line dipped 1.6% year over year. Moreover, total revenues of $569 million missed the Zacks Consensus Estimate of $580.8 million and also dropped 9.3% year over year due to soft fuel surcharge and logistics revenues. The company sports a Zacks Rank #1, currently.

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Canadian National Railway Company (CNI) : Free Stock Analysis Report
 
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
 
DHT Holdings, Inc. (DHT) : Free Stock Analysis Report
 
Werner Enterprises, Inc. (WERN) : Free Stock Analysis Report
 
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