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Do Analysts See a Bright 4Q16 for DHT Holdings?

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Jan. 18 2017, Updated 10:36 a.m. ET

Spot earnings

According to DHT Holdings (DHT), in 4Q16, the company earned spot earnings of $34,300 per day for its VLCCs (very large crude carriers), higher than the spot earnings of $20,300 per day it achieved in the third quarter. In this article, we’ll see what analysts expect for DHT in the fourth quarter.

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Analysts’ revenue and earnings estimates

Wall Street analysts expect revenue of just over $68 million in 4Q16 for DHT Holdings, a rise from the 3Q16 revenue of $50 million. The revenue is expected to be 14% lower year-over-year.

Analysts estimate that Frontline’s (FRO) 4Q16 revenue will be 7.4% higher year-over-year. Conversely, analysts expect a 38% year-over-year fall in Euronav’s (EURN) 4Q16 revenue.

Fiscal 2016 revenue for DHT is expected to be $288 million—2.7% lower than the revenue of $296 million reported in 2015. Revenue is expected to fall to $244 million in 2017.

Analysts’ estimate for DHT’s EBITDA (earnings before interest, tax, depreciation, and amortization) in 4Q16 is $43 million, a rise from the $30 million reported in 3Q16 and a fall from the $59 million reported in 4Q15.

2016 EBITDA are estimated to be $200 million, lower than the $214 million reported in 2015. In 2017, EBITDA are expected to drop further to $148 million.

Analysts’ ratings

Maxim Group initiated coverage on DHT Holdings with a “buy” rating and a price target of $7.50. Maxim Group also initiated coverage on crude tankers Tsakos Energy Navigation (TNP) and Nordic American Tankers (NAT).

16 analysts cover DHT Holdings. Of these 16, four analysts have given the company a “strong buy” and another four analysts have given it a “buy.” Eight analysts have given “hold” recommendations for the stock. The consensus target price for DHT Holdings is $5.47, which implies an upside of 34%.

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