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What's in Store for Navios Maritime (NMM) in Q2 Earnings?

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·3 min read
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Navios Maritime Partners L.P. NMM is scheduled to release second-quarter 2021 earnings numbers on Jul 27, before market open.

The company has a disappointing track record with respect to the bottom line, having outperformed the Zacks Consensus Estimate in two of the last four quarters. It reported lower-than-expected earnings per unit in the other two quarters. On average, it has a trailing four-quarter negative earnings surprise.

Given this backdrop, let’s discuss the factors that might have influenced the company’s performance in the June-end quarter.

Navios Maritime Partners LP Price and EPS Surprise

Navios Maritime Partners LP Price and EPS Surprise
Navios Maritime Partners LP Price and EPS Surprise

Navios Maritime Partners LP price-eps-surprise | Navios Maritime Partners LP Quote

Navios Maritime’s second-quarter performance is likely to have been aided by the year-over-year increase in the time charter equivalent rate (TCE). TCE refers to voyage and time charter revenues less voyage expenses during a time period divided by the number of available days.

Time charter and voyage revenues are likely to have inched up in the June-end quarter, primarily driven by anincrease in fleet size. Additionally, per the Zacks Consensus Estimate, Navios Maritime’s second-quarter earnings are likely to have increased more than 100% from the year-ago quarter’s reported number to $2.38 per unit.

However, the increase in vessel operating expenses (due to increased fleet) is likely to have hurt the company’s results.

Earnings Whispers

The proven Zacks model does not predict an earnings beat for Navios Maritime this time around. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat and that is not the case here.

Earnings ESP: Navios Maritime has an earnings ESP of +0.00% as the Most Accurate Estimate is in line with 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: Navios Maritime currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of Q1 Earnings

In the last reported quarter, the company reported a negative earnings surprise of 18.5%. Moreover, revenues increased 8.7% year over year to $43.8 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Hawaiian Holdings, Inc. HA, Canadian Pacific Railway Limited CP and Allegiant Travel Company ALGT. These stocks possess the right combination of elements to beat on earnings this reporting cycle.

Hawaiian Holdings has an Earnings ESP of +2.93% and is Zacks #2 Ranked, presently. The company will release second-quarter 2021 results on Jul 27.

Canadian Pacific has an Earnings ESP of +1.40% and carries a Zacks Rank #3 at present. The company will release second-quarter 2021 results on Jul 28.

Allegiant has an Earnings ESP of +7.01% and is currently a #3 Ranked player. The company will release second-quarter 2021 results on Jul 28.


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Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report

Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report

Allegiant Travel Company (ALGT) : Free Stock Analysis Report

Navios Maritime Partners LP (NMM) : Free Stock Analysis Report

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