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Star Bulk (SBLK) to Report Q1 Earnings: What's in Store?

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Star Bulk Corporation SBLK is scheduled to release first-quarter 2021 results on May 19, after market close.

The shipping company has a mediocre surprise record with its earnings having surpassed the Zacks Consensus Estimate in two of the last four quarters, lagging estimates in the other two.

Star Bulk Carriers Corp. Price and Consensus

Star Bulk Carriers Corp. Price and Consensus
Star Bulk Carriers Corp. Price and Consensus

Star Bulk Carriers Corp. price-consensus-chart | Star Bulk Carriers Corp. Quote

Moreover, the Zacks Consensus Estimate for first-quarter earnings has been revised 10.53% upward over the past 60 days.

Against this backdrop, let’s examine the factors that are likely to have impacted the company’s March-quarter performance.

We expect Star Bulk’s first-quarter bottom-line performance to have been hurt by higher vessel operating expenses, mainly due to increased crew expenses related to greater number of crew changes performed during the quarter as a result of coronavirus-related restrictions. Notably, COVID-induced supply-chain disruptions are likely to dent this shipping company’s results.

However, Star Bulk’s results for the to-be-reported quarter are likely to be aided by the overall optimism surrounding the shipping industry as economic activities gradually gather pace.

Key Development in Q1

The company’s efforts to expand its fleet are also impressive. Notably, this dry-bulk shipping company entered into an agreement on Mar 3 to acquire two resale modern Kamsarmax vessels. Moreover, on Mar 16, the company took delivery of six dry bulk vessels following its agreement with Eneti NETI.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Star Bulk 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, which is not the case here as shown below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Star Bulk has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 42 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Star Bulk sports a Zacks Rank of 1, currently.

Highlights of Q4 Earnings

Star Bulk’s earnings (excluding 1 cent from non-recurring items) of 30 cents per share surpassed the Zacks Consensus Estimate of 23 cents. Quarterly earnings, however, declined 16.7 % on a year-over-year basis.

Snapshots of Sectorial Releases

Even though transportation stocks have struggled this earnings season so far due to coronavirus woes, the bottom-line results of a few companies surpassed estimates. Below we present two such industry winners.

Landstar System LSTR reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus Estimate of $1.61. Additionally, revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million.

Norfolk Southern Corporation’s NSC first-quarter 2021 earnings of $2.66 per share surpassed the Zacks Consensus Estimate of $2.55. Moreover, the bottom line improved 3.1% year over year on lower costs.

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Norfolk Southern Corporation (NSC) : Free Stock Analysis Report

Landstar System, Inc. (LSTR) : Free Stock Analysis Report

Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report

Eneti Inc. (NETI) : Free Stock Analysis Report

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