Costamare (CMRE) to Report Q3 Earnings: What's in Store?
Costamare CMRE is scheduled to report third-quarter 2022 results on Nov 2, before market open.
The Zacks Consensus Estimate for third-quarter earnings has been revised 3% downward to 87 cents per share over the past 60 days. CMRE, however, has an encouraging earnings history. Its bottom line outperformed estimates in three of the preceding four quarters (reporting in-line earnings in the remaining one). The average beat is 4.36%.
Costamare Inc. Price and EPS Surprise
Costamare Inc. price-eps-surprise | Costamare Inc. Quote
Against this backdrop, let’s look at the factors likely to have impacted Costamare’s September-quarter performance.
With the gradual resumption of economic activities, the world trade gathered pace, which is a positive for shipping stocks like Costamare. This is because the shipping industry is responsible for transporting a high proportion of goods involved in world trade.
Bullishness surrounding the containership market is a tailwind to Costamare. A ramp-up of manufacturing activities in Asia aids the containership market besides other factors.
However, we expect CMRE’s third-quarter bottom-line performance to have been affected by higher vessel operating expenses, mainly due to the increased average number of vessels in its fleet. High fuel costs are likely to have shot up total expenses.
Earnings Whispers
Our proven model does not predict an earnings beat for Costamare 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 a positive surprise. However, that is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Costamare has an Earnings ESP of -6.36% as the Most Accurate Estimate is currently pegged at 81 cents, 6 cents below the Zacks
Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Costamare carries a Zacks Rank #3, currently.
Stocks to Consider
Here are a few stocks worth considering from the broader Zacks Transportation sector, as our model shows that these have the right combination of elements to beat on third-quarter 2022 earnings:
Copa Holdings CPA has an Earnings ESP of +0.26% and a Zacks Rank #2. CPA will release results on Nov 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA has an expected earnings growth rate of more than 100% for the current year. CPA delivered a trailing four-quarter earnings surprise of 174.22%, on average.
Air Transport Services ATSG has an Earnings ESP of +1.89% and a Zacks Rank of 3. ATSG will release results on Nov 3.
The ATSG stock has witnessed an upward revision of 3.8% over the past 90 days. Increased demand for midsize freighters is supporting growth at ATSG.
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Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report
Costamare Inc. (CMRE) : Free Stock Analysis Report
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