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Will High Expenses Hurt Dorian LPG's (LPG) Q1 Earnings?

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Dorian LPG (LPG - Free Report) is set to report its first-quarter fiscal 2025 results on Thursday, Aug 1.

The company, which operates a fleet of very large gas carriers for transporting liquefied petroleum gases like propane and butane on long-haul voyages, mainly from the United States/ Middle East to Asia, has an impressive track record with respect to earnings per share, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark once). The average beat is 0.4%.

Dorian LPG Ltd. Price and EPS Surprise

Dorian LPG Ltd. Price and EPS Surprise

Dorian LPG Ltd. price-eps-surprise | Dorian LPG Ltd. Quote

Given this backdrop, let us unearth the factors likely to have influenced Dorian LPG’s performance in the to-be-reported quarter.

We expect LPG’s fiscal first-quarter bottom-line performance to have been affected by higher vessel operating expenses, mainly due to the increased average number of vessels in its fleet. High fuel costs are likely to have shot up total expenses at LPG, currently carrying a Zacks Rank #5 (Strong Sell). Charter hire expenses for vessels time chartered-in from third parties are anticipated to have been higher in the first quarter of fiscal 2025 from the year-ago quarter.

The increased demand for liquefied petroleum gases is likely to have aided the top line in the to-be-reported quarter. An increase in average time charter equivalent (TCE) rates and fleet size is expected to have aided revenues. TCE rates refer to a key measure of the average daily revenue performance of a vessel.

Highlights of Q4 Earnings

Dorian LPG’s fourth-quarter fiscal 2024 earnings (excluding 5 cents from non-recurring items) of $1.91 per share surpassed the Zacks Consensus Estimate of $1.81. Total revenues of $141.4 million missed the Zacks Consensus Estimate by 9.8%.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Copa Holdings (CPA - Free Report) has an Earnings ESP of +1.55% and carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CPA will release results on Aug 7. Upbeat air-travel demand is likely to have aided the second-quarter performance.

The Zacks Consensus Estimate for CPA’s second-quarter 2024 earnings has been revised downward by 18.9% in the past 60 days to $2.87 per share. CPA has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 20.2%.

Expeditors International of Washington (EXPD - Free Report) currently has an Earnings ESP of +2.22% and a Zacks Rank #2 (Buy). EXPD is scheduled to report second-quarter 2024 earnings on Aug 6. Lackluster volumes (with respect to air-freight tonnage and ocean containers) due to weakening demand and falling rates are likely to have hurt EXPD’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter earnings has been revised 3.3% upward in the last 60 days. EXPD surpassed the Zacks Consensus Estimate for earnings in only one of the preceding four quarters and missed thrice, the average negative earnings surprise being 3.4%.


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Expeditors International of Washington, Inc. (EXPD) - free report >>

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