Earnings Preview: Nordic American Tankers

After U.S. markets closed on Wednesday, Nvidia absolutely shattered expectations for both earnings per share (EPS) and revenue. Not only that, the company expects the current quarter’s results to be well ahead of Wall  Street’s prior estimates. Moody’s Investors Service made this comment on Nvidia’s second quarter: “There is no meaningful competition for Nvidia’s high-performance GPUs until AMD starts shipping its new AI accelerators in high volumes in early 2024. Nvidia is on track to outpace our revenue estimates of $43 billion for FY ‘24 and $49 billion in FY ‘25 by $10 billion.” Shares traded up 5% shortly after Thursday’s opening bell.

Autodesk beat consensus estimates for both revenue and EPS. Year over year, EPS rose by 15.8% and revenue by 8.7%. EPS guidance for the current quarter and full fiscal year was above the consensus estimate; revenue guidance was in line with expectations. Shares traded up 4%.

Before markets opened on Thursday, Petco reported EPS that matched estimates and beat the revenue estimate. However, the company issued downside fiscal 2024 EPS and revenue guidance. EPS guidance was set in a range of $0.24 to $0.30, compared to a prior estimate of $0.42. Shares were beaten down by more than 19%.

Dollar Tree beat estimates on both the top and bottom lines and issued mixed guidance for the third quarter and in-line guidance for the fiscal year. Shares traded down by nearly 10%.

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Affirm, Gap, Marvell and Nordstrom will report quarterly results after Thursday’s closing bell. No notable earnings reports are scheduled for Friday.

Here is a look at what analysts expect when Nordic American Tankers Ltd. (NYSE: NAT) shares its quarterly results first thing Monday morning.

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The company operates a fleet of 19 oil tankers capable of transporting up to 1 million barrels of crude oil each through the Suez Canal (Suezmax class). Over the past 12 months, shares have added nearly 56% to their share price, including a 38% increase so far in 2023. First-quarter revenue of $87.1 million was up more than 400% year over year.

The market for Suezmax class tankers has boomed since sanctions were imposed on Russian crude exports following the invasion of Ukraine. Nordic American continues to expect strong demand for its ships, and shareholders can continue to expect whopping dividends.

Just three analysts cover the stock, and two of them have Buy ratings, while the other one rates it at Hold. At a recent price of around $4.20 a share, the upside potential based on a median price target of $5.00 is 19%. At the high target of $5.50, the upside potential is about 31%.

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For the company’s second quarter of fiscal 2023, analysts expect revenue of $65.17 million, which would be down 25.1% sequentially but up 87.5% year over year. The shipper’s adjusted EPS are expected to be $0.14, down 34.9 % sequentially and above the year-ago loss of $0.02 per share. For the full fiscal year, EPS are forecast to come in at $0.65, up from $0.05 in 2022, on sales of $292.79 million, up nearly 73.4%.

Nordic American stock trades at 6.5 times expected 2023 EPS, 6.2 times estimated 2024 earnings of $0.68 and 5.9 times estimated 2025 earnings of $0.72 per share. The 52-week trading range is $2.33 to $4.65. The company pays an annual dividend of $0.60 (yield of 14.32%). Total shareholder return for the past year was 72.21%.