A month has gone by since the last earnings report for Golar LNG (GLNG). Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Golar LNG due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at Golar LNG in Q3
GLNG’s earnings (on an adjusted basis) of 44 cents per share surpassed the Zacks Consensus Estimate of 24 cents per share. GLNG had incurred a loss of 1 cent per share a year ago.
Revenues of $68 million surpassed the Zacks Consensus Estimate of $66 million. The top line, however, dropped 35.2% year over year. Revenues in the FLNG segment inched up 0.7% year over year. Vessel operating costs declined marginally on a sequential basis to $17.7 million. Administrative expenses increased 5% sequentially to $10.4 million.
The FLNG unit contributed 80% to GLNG’s top line. The shipping unit contributed 1.4% of the top line. The balance came from corporate and other sources.
Adjusted EBITDA surged 62.9% year over year to $85.2 million in the quarter. GLNG exited the September quarter with $498.2 million of cash and cash equivalents and $130.9 million of restricted cash.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted 6.1% due to these changes.
VGM Scores
At this time, Golar LNG has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren’t focused on one strategy, this score is the one you should be interested in.
Outlook
Golar LNG has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Golar LNG Limited (GLNG) : Free Stock Analysis Report
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