What Awaits Genco Shipping & Trading (GNK) in Q3 Earnings?
Genco Shipping & Trading Limited GNK is scheduled to report third-quarter 2022 results on Nov 9, after market close.
The Zacks Consensus Estimate for GNK’s third-quarter 2022 earnings has been revised 12.8% downward in the past 60 days. GNK, however, has an impressive earnings surprise history, with its bottom line having outperformed the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark in the remaining one), the average beat being 3.8%.
Genco Shipping & Trading Limited Price and EPS Surprise
Genco Shipping & Trading Limited price-eps-surprise | Genco Shipping & Trading Limited Quote
Against this backdrop, let’s unearth the factors likely to impact GNK’s third-quarter results.
We expect high bunker expenses to have elevated operating costs, hurting the bottom line in turn. Bunker expenses are likely to have increased as a result of high fuel costs. Vessel operating expenses are also likely to have been high in the to-be-reported quarter due to escalated crew expenses.
On a brighter note, the favorable market sentiment surrounding the dry bulk market is a huge boon for Genco Shipping & Trading and is likely to have boosted its top line in the soon-to-be-reported quarter. Increased fleet utilization with the gradual resumption of economic activities and an uptick in world trade are likely to get reflected in GNK’s impending results. The Zacks Consensus Estimate for third-quarter fleet utilization is currently pegged at 99%, indicating growth from 97% recorded in second-quarter 2022.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Genco Shipping & Trading this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Genco Shipping & Trading currently has an Earnings ESP of +4.55% and a Zacks Rank #5 (Strong Sell).
Stocks With Favorable Combination
Our model recommends some stocks like Pyxis Tankers PXS and Copa Holdings CPA for investors’ consideration from the Zacks Transportation sector, as these have the right combination of elements to beat on earnings in their upcoming releases.
Pyxis has an Earnings ESP of +12.82% and a Zacks Rank of 1, currently. PXS’ earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters, missed the mark twice and came in line with the same on the remaining occasion. The average negative surprise is 30.1%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PXS’s third-quarter earnings is pegged at 39 cents per share, indicating a 197.5% surge from the year-ago quarter’s loss of 40 cents. The consensus mark for revenues stands at $16.4 million, suggesting an increase of 134% from the year-ago quarter’s reported figure.
Copa Holdings has an Earnings ESP of +0.26% and a Zacks Rank #2 at present. CPA is scheduled to report third-quarter 2022 results on Nov 16. CPA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average being 174.2%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $2.63 per share, suggesting a 275.7% increase from the prior-year period’s reading. Copa’s quarterly revenues are estimated to increase 83.4% from the year-ago quarter’s reported figure to $816.2 billion.
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Genco Shipping & Trading Limited (GNK) : Free Stock Analysis Report
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