Golar LNG Q3 Earnings: Is GLNG Cheap at 0.8x Price/Book?

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Golar LNG Limited (NASDAQGS:GLNG) is scheduled to report Q3 earnings results on Tuesday, November 26, 2019. The company is expected to report earnings of -$0.29/share on revenue of $107.3 million. The consensus earnings per share (EPS) of -$0.29/share is based on a poll of 12 analysts.

The revenue forecast of $107.3 million based on a poll of 6 analysts implies a year-over-year (YoY) decline of -12.8%. Last year the company reported $123.1 million in revenue for the quarter.

Expected to report EPS of -$0.29/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $107.31 $123.10 -12.8%
EPS -$0.29 -$0.11 NM

Earnings Call Trends

Historically, management has exceeded analyst expectations 1 out of the last 8 tracked quarters, and missed expectations 7 quarters. What are your expectations from Golar LNG for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 -$0.31 -$0.62 NM Missed
Q1, 2019 -$0.25 -$0.30 NM Missed
Q4, 2018 $0.15 -$0.85 NM Missed
Q3, 2018 -$0.13 -$0.11 NM Beat
Q2, 2018 -$0.21 -$0.62 NM Missed
Q1, 2018 -$0.19 -$0.33 NM Missed
Q4, 2017 -$0.30 -$0.34 NM Missed
Q3, 2017 -$0.36 -$0.48 NM Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2019, the stock price reacted by falling by -12.7%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-29 $13.42 $11.71 -12.7% Decline
2019-05-21 $19.07 $19.99 4.8% Increase
2019-02-27 $21.76 $20.64 -5.1% Decline
2018-11-05 $28.70 $29.72 3.6% Increase

Fundamentals And Technical Analysis

Golar LNG is currently trading at $12.40/share, down 0.0% for the day. The company is trading at approximately 41.0% of its 52-week high of $30.29/share. The company’s stock price is up 5.9% since the last earnings report and down -3.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 43.29 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of -3.8x and a forward P/E multiple of -9.4x. Golar LNG’s current share price also implies a price-to-book (P/B) multiple of 0.8x. The following table summarizes some other key fundamental ratios:

Data as of November 25, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $12.40
P/E Ratio -3.8x
P/E Ratio (Fwd) -9.4x
PEG Ratio 0.1
Total Debt to Capital (%) 63.9%
Levered Free Cash Flow -$70.215 million
Enterprise Value / EBITDA 17.3x

Source: Finbox

Company Profile: Golar LNG Limited

Golar LNG Limited is a small-cap stock with a market capitalization of $1.22 billion and a total enterprise value of $3.743 billion. The company operates in the Energy sector and Oil, Gas & Consumable Fuels industry.

Golar LNG Limited, a midstream liquefied natural gas (LNG) company, engages in the transportation, regasification, and liquefaction of LNG. It operates through three segments: Vessel operations, Floating Liquefaction Natural Gas Vessel (FLNG), and Power.

The company engages in the acquisition, ownership, operation, and chartering of LNG carriers and floating storage regasification units (FSRUs); and the development of LNG projects. Golar LNG Limited owns and operates a fleet of 16 LNG carriers, 8 FSRUs, and 1 FLNG.

The company was founded in 1946 and is headquartered in Hamilton, Bermuda.

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