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Grindrod Shipping (GRIN) to Post Q4 Earnings: What's in Store?

·4 min read

Grindrod Shipping Holdings Ltd. GRIN is scheduled to release fourth-quarter 2021 earnings on Feb 16, after market close.

The Zacks Consensus Estimate for fourth-quarter earnings has been stable at $2.50 over the past seven days. The consensus mark for revenues is currently pegged at $118.51 million.

Against this backdrop, let’s discuss the factors that might have impacted Grindrod Shipping’s performance in the December quarter.

With the gradual resumption of economic activities, the world trade picked up the pace, which in turn, is likely to aid the fourth-quarter results of shipping stocks like Grindrod Shipping. This is because the shipping industry is responsible for transporting an enormous proportion of goods involved in world trade.

The bullish sentiment surrounding the Drybulk market is likely to have boosted Grindrod Shipping’s top line in the to-be-reported quarter. Revenues are likely to have increased owing to favorable Drybulk freight rates. However, we expect GRIN’s fourth-quarter bottom-line performance to have been hurt by an escalated time charter and voyage expenses. A sharp rise in oil price is augmenting fuel costs. This, in turn, is likely to have jacked up the operating costs in the to-be-reported quarter.

Moreover, the Omicron-variant-induced operational hazards are likely to have hampered the shipping company’s performance in the December quarter.

What Does the Zacks Model Say?

Our proven model predicts an earnings beat for Grindrod Shippingthis 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, which is the case here as elaborated below. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Grindrod Shippinghas an Earnings ESP of +10.62% as the Most Accurate Estimate is 26 cents above the Zacks Consensus Estimate of $6.11. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Grindrod Shippingcurrently carries a Zacks Rank #3.

Highlights of Q3 Earnings

Grindrod Shipping's fourth-quarter earnings (excluding 9 cents from non-recurring items) of $2.28 per share surpassed the Zacks Consensus Estimate of $2.09. Total revenues of $135.1 million surpassed the Zacks Consensus Estimate of $117.3 million

Other Stocks to Consider

Investors interested in the broader Transportation sector may also consider Eagle Bulk Shipping Inc. EGLE, Atlas Air Worldwide AAWW and Expeditors International of Washington, Inc. EXPD as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank #3. Eagle Bulk will report fourth-quarter results on Mar 3.

Eagle Bulk’s shares have gained 89.4% in a year. EGLE has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average. Strong trading volumes are likely to have boosted EGLE’s performance in the to-be-reported quarter.

Atlas Air currently has an Earnings ESP of +3.11% and a Zacks Rank of 1. AAWW will report fourth-quarter results on Feb 17.

Strong demand for air freight despite the coronavirus pandemic supports Atlas Air. The boom in e-commerce trends amid the current scenario is a catalyst. These tailwinds are expected to have aided AAWW’s fourth-quarter performance.

Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player. EXPD will release fourth-quarter 2021 results on Feb 22.

Uptick in airfreight revenues is aiding EXPD. Due to the coronavirus-induced imbalance between scheduled capacity and demand, EXPD is using charters to meet customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Grindrod Shipping Holdings Ltd. (GRIN) : Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW) : Free Stock Analysis Report
Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report
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