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Golar LNG (GLNG) Gears Up for Q2 Earnings: A Beat in Store?

Zacks Equity Research

Golar LNG Limited GLNG is slated to release second-quarter 2019 results on Aug 29.

In the last reported quarter, the company witnessed a negative earnings surprise of 42.3%. It incurred a wider-than-expected loss of 26 cents. Moreover, the amount of loss increased on a year-over-year basis. However, the top line surged 47.7% year over year and also surpassed the Zacks Consensus Estimate.

Let’s see how things are shape up for this earnings season.

Factors Likely at Play

Similar to the past few quarters, high operating expenses due to escalating vessel operating costs are expected to affect the company’s bottom line in the second quarter.
 
Additionally, declining revenues from Time and voyage charter as well as Vessel and other management fees might hamper the company’s top line in the quarter to be reported.

However, with the shipping market back on track after the first-quarter sluggishness, results are anticipated to benefit in the second quarter. Further, the FLNG HilliEpiseyo operations are estimated to boost earnings on the back of improved operational efficiency.  

Golar LNG Limited Price and EPS Surprise

Golar LNG Limited Price and EPS Surprise

Golar LNG Limited price-eps-surprise | Golar LNG Limited Quote

Earnings Whispers

Our proven model shows that Golar LNG is likely to beat on earnings in the second quarter on the back of a perfect combination of the following two key ingredients:

Earnings ESP: Golar LNG has an Earnings ESP of +22.06% as the Most Accurate Estimate is pegged at a loss of 27 cents, while the Zacks Consensus Estimate stands at a loss of 34 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Golar LNG carries a Zacks Rank #3 (Hold). Note that stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3, when combined with a positive earnings ESP have significantly higher chances of beating estimates.

Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is witnessing negative estimate revisions.

Other Stocks to Consider

Investors may consider stocks like The Bank of Nova Scotia BNS, Bank of Montreal BMO and Burlington Stores BURL as these stocks possess the right mix of elements to beat on earnings in their next releases.

The Bank of Nova Scotia has an Earnings ESP of +0.97% and a Zacks Rank #2. The company is scheduled to report third-quarter fiscal 2019 earnings on Aug 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bank of Montreal has an Earnings ESP of +0.27% and a Zacks Rank of 3. The company is scheduled to report third-quarter fiscal 2019 earnings on Aug 27.

Burlington Stores has an Earnings ESP of +0.17% and a Zacks Rank of 2. The company is scheduled to report second-quarter fiscal 2019 earnings on Aug 29.

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Golar LNG Limited (GLNG) : Free Stock Analysis Report
 
Bank Of Montreal (BMO) : Free Stock Analysis Report
 
Bank of Nova Scotia (The) (BNS) : Free Stock Analysis Report
 
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
 
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