Yahoo Finance Euronav’s Stock Rose following Its 1Q16 Earnings Beat
An In-Depth Look at Euronav's 1Q16 and Beyond
Revenue and EBITDA are up
On April 27, 2016, Euronav (EURN) released its 1Q16 earnings before the market opened. Euronav’s 1Q16 revenue reached $214 million, up from $204 million in the same period last year.
The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) also rose year-over-year. It came in at $163 million, 24% higher compared to $131 million in 1Q15.
Compared to the previous quarter’s revenue of $225 million, Euronav’s 1Q16 revenues fell. The crude tanker industry is characterized by seasonality. Generally, the fourth quarter is stronger than the first quarter in any year.
Actual versus estimate
In 1Q16, Euronav’s revenue was 6.4% higher than Wall Street analysts’ consensus estimate of $201 million. The company’s comparative revenue of $205 million was also higher by 1.9%. Euronav’s $163 million EBITDA was 6% higher than analysts’ consensus estimate of $154 million.
Stock performance
Beating analysts’ estimates, Euronav’s share price rose by 4%. The returns of other crude tanker stocks were as follows:
Teekay Tankers (TNK) fell by 1%.
Tsakos Energy Navigation’s (TNP) stock price didn’t move.
Nordic American Tankers (NAT) rose by 1%.
Frontline (FRO) rose by 3%.
DHT Holdings (DHT) rose by 1%.
Navios Maritime Partners (NAP) rose by 3%.
Investors interested in broad exposure to industrial stocks could invest in the SPDR Dow Jones Industrial Average ETF (DIA).
Series overview
In this series, we’ll look at Euronav’s 1Q16 results and analyze the company’s key developments. We’ll also focus on the company’s 2Q16 outlook and take a close look at management’s views on the crude tanker industry. Keep reading for deeper analysis.
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