What's in the Cards for Golar LNG (GLNG) in Q1 Earnings?

Golar LNG Limited GLNG is slated to release first-quarter 2022 earnings numbers on May 26.

The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters while missing the same in one.

Let’s see how things are shaping up for Golar LNG this earnings season:

Factors to Note

European countries looking for gas outside Russia amid the war tensions are likely to have driven demand for LNG vessels. This is expected to have aided Golar LNG’s first-quarter performance.

Golar LNG Limited Price and EPS Surprise

Golar LNG Limited Price and EPS Surprise

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

Improved performance of the shipping unit is expected to have aided the company’s top line. Upbeat operations at FLNG (Floating Liquefied Natural Gas) Hilli Episeyo are likely to have driven GLNG’s first-quarter performance.

Reduced vessel operating expenses are likely to have aided Golar LNG’s bottom line in the first quarter. However, an expected softness in FLNG revenues might have hurt the top line.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Golar LNG 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Golar LNG has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 25 cents.

Zacks Rank: Golar LNG sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Q4 Highlights

Golar LNG’s fourth-quarter 2021 earnings (excluding 16 cents from non-recurring items) of 22 cents per share surpassed the Zacks Consensus Estimate of 10 cents. The bottom line improved more than 100% year over year. Adjusted revenues of $115.4 million beat the Zacks Consensus Estimate of $114 million. The top line dipped 2.8% year over year, primarily due to a 9.7% decline in FLNG revenues.

Snapshots of Sectorial Releases

Below we present the first-quarter results of some companies within the Zacks Transportation sector.

Ryanair Holdings RYAAY, carrying a Zacks Rank #3, incurred a loss (excluding 50 cents from non-recurring items) of 98 cents per share in the fourth quarter of fiscal 2022 (ended Mar 31, 2022), narrower than the Zacks Consensus Estimate of a loss of $1.11. However, the amount of loss narrowed significantly year over year. Results were hurt by the impact of Omicron and the Russia-Ukraine war on travel demand.

Ryanair Holdings’ quarterly revenues of $1,319.6 million fell short of the Zacks Consensus Estimate of $1,356.3 million but improved significantly year over year with increase in traffic despite lower average fares (down 27% year over year due to Omicron-induced woes and the Russian invasion of Ukraine).

Kirby Corporation KEX, carrying a Zacks Rank #3, reported first-quarter 2022 earnings of 29 cents per share, which met the Zacks Consensus Estimate. In the year-ago period, the company had incurred a loss of 6 cents per share.

Kirby’s total revenues of $611 million outperformed the Zacks Consensus Estimate of $583 million and also improved approximately 23% year over year. The upside was driven by higher revenues at the marine transportation, and distribution and services segments.

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