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KNOP beat the Zacks Consensus Estimate for earnings in three of the last four quarters (missing the mark once). The average beat is 324.3%. The Zacks Consensus Estimate for loss per unit in the to-be-reported quarter has remained stable at 13 cents in the past 30 days. The Zacks Consensus Estimate for revenues in the to-be-reported quarter has declined 5.4% year over year to $69.8 million.
Against this backdrop, let’s take a look at the factors that might have shaped the partnership’s June-quarter performance.
We expect KNOT Offshore’s results to reflect bullishness surrounding the tanker market as product tanker rates are currently at healthy levels despite minor hiccups. Also, normalization of economic activities and an uptick in world trade following the removal of COVID-19-induced restrictions are expected to have boosted KNOP’s top-line performance.
The attacks by Yemen’s Houthi militants on vessels in the Red Sea have disrupted maritime trade. As a result, many shipping companies, including ASC, have hit the pause button as far as transit through this route is concerned.
Keeping the safety of the crew in mind, KNOP is adopting the longer and costlier route around Cape of Good Hope in South Africa rather than through the Suez Canal. Reduced container availability due to the Red Sea tensions has resulted in a rise in freight rates. Lower capacity is expected to have boosted the bottom line. However, costs are likely to have been steep due to a rise in oil prices and supply-chain troubles. High costs are likely to have limited bottom-line growth in the to-be-reported quarter.
What Does the Zacks Model Say?
The proven Zacks model does not conclusively predict an earnings beat for KNOP 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, which is not the case here.
Earnings ESP: KNOT Offshore has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Delta Air Lines (DAL - Free Report) 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 - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate. JBHT’s 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 revenue, 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 (“ICS”), 9% in Truckload and 9% in Dedicated Contract Services. These were partially offset by the 5% revenue growth of Final Mile Services, driven by new contracts implemented in the past year and a 5% increase in revenue per load in ICS.
United Airlines (UAL - Free Report) 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 due 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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KNOP to Report Q2 Earnings: What's in Store for the Stock?
KNOT Offshore Partners LP (KNOP - Free Report) is scheduled to report its second-quarter 2024 results on Sep. 4 before market open.
KNOP beat the Zacks Consensus Estimate for earnings in three of the last four quarters (missing the mark once). The average beat is 324.3%. The Zacks Consensus Estimate for loss per unit in the to-be-reported quarter has remained stable at 13 cents in the past 30 days. The Zacks Consensus Estimate for revenues in the to-be-reported quarter has declined 5.4% year over year to $69.8 million.
KNOT Offshore Partners LP Price and EPS Surprise
KNOT Offshore Partners LP price-eps-surprise | KNOT Offshore Partners LP Quote
Against this backdrop, let’s take a look at the factors that might have shaped the partnership’s June-quarter performance.
We expect KNOT Offshore’s results to reflect bullishness surrounding the tanker market as product tanker rates are currently at healthy levels despite minor hiccups. Also, normalization of economic activities and an uptick in world trade following the removal of COVID-19-induced restrictions are expected to have boosted KNOP’s top-line performance.
The attacks by Yemen’s Houthi militants on vessels in the Red Sea have disrupted maritime trade. As a result, many shipping companies, including ASC, have hit the pause button as far as transit through this route is concerned.
Keeping the safety of the crew in mind, KNOP is adopting the longer and costlier route around Cape of Good Hope in South Africa rather than through the Suez Canal. Reduced container availability due to the Red Sea tensions has resulted in a rise in freight rates. Lower capacity is expected to have boosted the bottom line. However, costs are likely to have been steep due to a rise in oil prices and supply-chain troubles. High costs are likely to have limited bottom-line growth in the to-be-reported quarter.
What Does the Zacks Model Say?
The proven Zacks model does not conclusively predict an earnings beat for KNOP 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, which is not the case here.
Earnings ESP: KNOT Offshore has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: KNOT Offshore currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) 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 - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate. JBHT’s 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 revenue, 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 (“ICS”), 9% in Truckload and 9% in Dedicated Contract Services. These were partially offset by the 5% revenue growth of Final Mile Services, driven by new contracts implemented in the past year and a 5% increase in revenue per load in ICS.
United Airlines (UAL - Free Report) 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 due 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.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.