FLEX LNG to Report Q2 Earnings: What’s in Store?

FLEX LNG FLNG is scheduled to release second-quarter 2024 earnings results on Aug 14.

The shipping company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and missed on the remaining occasion, the average beat being 7.1%.

Against this backdrop, let’s delve into the factors that might have impacted FLEX LNG’s June-quarter performance.

We expect the upbeat demand for liquefied natural gas to have aided FLEX LNG’s performance in the to-be-reported quarter. Amid the prolonged Russia-Ukraine war, Europe is likely to seek gas supplies outside Russia. This is expected to have driven demand for LNG vessels.

On the flip side, FLNG’s performance is expected to have been affected by supply-chain disruptions. High operating expenses due to the increased average number of vessels in its fleet are likely to have hurt the bottom line. Steep fuel costs are expected to have raised total expenses.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for FLEX 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 odds of an earnings beat, which is not the case here.

Earnings ESP: FLNG has an Earnings ESP of 0.00%.

Zacks Rank: FLEX LNG carries a Zacks Rank of 3, currently.

Performances of Other Transportation Companies

Delta Air Lines DAL reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.

Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.

J.B. Hunt Transport Services’ JBHT earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.

JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenues, fell 6% year over year. The downfall was owing to a 5% decrease in gross revenue per load in Intermodal and a decline in load volume of 25% in Integrated Capacity Solutions, 9% in Truckload and 9% in Dedicated Contract Services.

United Airlines UAL reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.

Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year attributed to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.

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