What's in Store for Ardmore Shipping (ASC) in Q1 Earnings?
Ardmore Shipping Corporation ASC is scheduled to release first-quarter 2023 earnings on May 9, before market open.
The company has an impressive earnings record of beating the Zacks Consensus Estimate in each of the last four quarters. The average beat is 17.8%.
Against this backdrop, let’s take a look at the factors that might have shaped the company’s March-quarter performance.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues has surged more than 100% on a year-over-year basis.
Ardmore Shipping Corporation Price and EPS Surprise
Ardmore Shipping Corporation price-eps-surprise | Ardmore Shipping Corporation Quote
We expect Ardmore Shipping’s first-quarter performance to have been aided by the bullishness surrounding the tanker market as product tanker rates are currently at healthy levels, despite minor hiccups. Given the resumption of economic activities and an uptick in world trade, ASC’s top-line performance is expected to have been boosted.
Time Charter Equivalent or TCE rates, which represent net revenues (revenues less voyage expenses) divided by revenue days, are likely to have improved in the to-be-reported quarter owing to higher spot rates.
Costs are likely to have been steep in first-quarter 2023 due to supply-chain troubles. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved 14% south over the past 60 days.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Ardmore Shipping 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ASC has an Earnings ESP of 0.00% and a sports Zacks Rank #1 presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider since our model shows that these have the right combination of elements to beat on their fourth-quarter 2022 earnings.
Eagle Bulk Shipping Inc. EGLE currently has an Earnings ESP of +137.04% and a Zacks Rank of 3. EGLE will release first-quarter 2023 results on May 4.
EGLE has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters (missed once) by an average of 2.5%.
Copa Holdings CPA currently has an Earnings ESP of +19.57% and carries a Zacks Rank #2. CPA will release first-quarter 2023 results on May 10.
We expect Copa’s first-quarter performance to have been aided by upbeat air-travel demand. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 33.4%.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report
Ardmore Shipping Corporation (ASC) : Free Stock Analysis Report
