FLEX LNG Ltd is scheduled to release second-quarter earnings on Wednesday before the market open, with analysts projecting a 37% year-over-year increase in earnings to $0.63 per share and revenue of $93.5 million.
The company’s first-quarter results fell short on earnings but exceeded revenue expectations. FLEX LNG reported adjusted earnings of $0.31 per share in Q1, missing the $0.35 consensus estimate by 11%, while revenue of $80.5 million slightly topped forecasts by 1.4%. Current trading shows the stock at $30.88, up 0.26% on the day, valuing the company at 22.1 times trailing earnings and 13.6 times forward estimates.
Analyst sentiment remains cautious, with six covering firms maintaining a consensus Sell rating. The average price target stands at $25.88, implying a 16% downside from current levels. Dividend sustainability is a growing focus, with the company paying an annual dividend of $3.00, translating to a yield of nearly 10%. Forward earnings cover the dividend just 0.78 times, raising questions about future payout stability.
FLEX LNG operates a fleet of thirteen modern LNG carriers using fuel-efficient two-stroke propulsion. The sector has faced volatility in shipping rates, which briefly exceeded $300,000 per day in March amid Middle East supply disruptions. Recent market pressures include stranded newbuilds due to Qatari supply issues, increasing vessel supply and weighing on re-charter rates.
