Hafnia Ltd : Jefferies Cuts Target Price To $8 From $9

Wall Street expects a year-over-year increase in earnings on higher revenues when ZIM Integrated Shipping Services (ZIM) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 20. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This container shipping company is expected to post quarterly earnings of $6.19 per share in its upcoming report, which represents a year-over-year change of +414.2%.

Revenues are expected to be $2.21 billion, up 73.8% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 17.06% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for ZIM?

For ZIM, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +29.24%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination indicates that ZIM will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that ZIM would post earnings of $2.07 per share when it actually produced earnings of $3.08, delivering a surprise of +48.79%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

ZIM appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected Results

Among the stocks in the Zacks Transportation - Shipping industry, Hafnia Limited (HAFN) is soon expected to post earnings of $0.34 per share for the quarter ended September 2024. This estimate indicates a year-over-year change of +17.2%. This quarter's revenue is expected to be $355.1 million, down 17% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Hafnia Limited has remained unchanged. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Hafnia Limited will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Zacks Investment Research

DHT Holdings (DHT) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 4.76%. A quarter ago, it was expected that this independent oil tanker company would post earnings of $0.28 per share when it actually produced earnings of $0.27, delivering a surprise of -3.57%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

DHT Holdings, which belongs to the Zacks Transportation - Shipping industry, posted revenues of $93.62 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.05%. This compares to year-ago revenues of $89.09 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

DHT Holdings shares have added about 5.1% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for DHT Holdings?

While DHT Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for DHT Holdings: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.27 on $120.17 million in revenues for the coming quarter and $1.02 on $419.25 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Shipping is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Hafnia Limited (HAFN), has yet to report results for the quarter ended September 2024.

This company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +17.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Hafnia Limited's revenues are expected to be $355.1 million, down 17% from the year-ago quarter.

Zacks Investment Research

Global Ship Lease (GSL) came out with quarterly earnings of $2.45 per share, beating the Zacks Consensus Estimate of $2.43 per share. This compares to earnings of $2.33 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 0.82%. A quarter ago, it was expected that this containership owner would post earnings of $2.27 per share when it actually produced earnings of $2.46, delivering a surprise of 8.37%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Global Ship Lease, which belongs to the Zacks Transportation - Shipping industry, posted revenues of $174.06 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1%. This compares to year-ago revenues of $174.53 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Global Ship Lease shares have added about 24% since the beginning of the year versus the S&P 500's gain of 25.7%.

What's Next for Global Ship Lease?

While Global Ship Lease has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Global Ship Lease: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.43 on $173.99 million in revenues for the coming quarter and $9.85 on $699.06 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Shipping is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Hafnia Limited (HAFN), has yet to report results for the quarter ended September 2024.

This company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +17.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Hafnia Limited's revenues are expected to be $355.1 million, down 17% from the year-ago quarter.

Zacks Investment Research

The market expects Hafnia Limited (HAFN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +17.2%.

Revenues are expected to be $355.1 million, down 17% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Hafnia Limited?

For Hafnia Limited, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Hafnia Limited will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Hafnia Limited would post earnings of $0.42 per share when it actually produced earnings of $0.51, delivering a surprise of +21.43%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Hafnia Limited doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected Results

Another stock from the Zacks Transportation - Shipping industry, Euroseas Ltd. (ESEA), is soon expected to post earnings of $3.77 per share for the quarter ended September 2024. This estimate indicates a year-over-year change of -7.4%. Revenues for the quarter are expected to be $56.34 million, up 7.7% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Euroseas has been revised 2.2% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #1 (Strong Buy), makes it difficult to conclusively predict that Euroseas will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Zacks Investment Research

U.S. stock futures were lower this morning, with the Nasdaq futures falling over 80 points on Friday.

Shares of FedEx Corporation fell sharply in today's pre-market trading after the company reported weaker-than-expected results for the first quarter of fiscal 2025 and lowered its full-year guidance.

FedEx reported first-quarter revenue of $21.6 billion, missing analyst estimates of $21.955 billion, according to Benzinga Pro. The company reported first-quarter adjusted earnings of $3.60 per share, missing analyst estimates of $4.80 per share.

FedEx shares dipped 13.1% to $260.92 in pre-market trading.

Here are some big stocks recording losses in today's pre-market trading session.

• Rezolve AI Limited shares dipped 11.3% to $6.21 in pre-market trading after jumping around 47% on Thursday.
• Veea Inc. V shares fell 7.6% to $10.22 in pre-market trading after declining around 10% on Thursday. Veea recently announced a strategic partnership with Crowdkeep to integrate their respective technologies into a singular, tailored solution to track assets, people, and conditions across a variety of use cases.
• MillerKnoll, Inc. shares declined 5.4% to $25.99 in the pre-market trading session as the company reported downbeat first-quarter financial results on Thursday.
• Adient plc shares fell 5.1% to $21.43 in pre-market trading.
• Frontline plc shares declined 5% to $22.75 in pre-market trading.
• Evotec SE slipped 5% to $3.46 in pre-market trading.
• Hafnia Limited shares fell 4.9% to $7.34 in pre-market trading.
• Lennar Corporation shares declined 3.1% to $186.45 in pre-market trading. Lennar reported better-than-expected financial results for the third quarter. The company said it sees fourth-quarter new orders in a range of 19,000 to 19,300 and deliveries between 22,500 and 23,000. The company expects the average sales price to be approximately $425,000.

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