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What's in Store for Ardmore Shipping (ASC) in Q4 Earnings?

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Ardmore Shipping Corporation (ASC - Free Report) is scheduled to release fourth-quarter 2022 earnings on Feb 14, before market open.

The company has an impressive earnings record of beating the Zacks Consensus Estimate thrice in the last four quarters while reporting in-line earnings in the remaining one. The average beat is 17.42%.

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved 17.4% north over the past 60 days.

Against this backdrop, let’s take a look at the factors that might have shaped the company’s December-quarter performance.

We expect Ardmore Shipping’s fourth-quarter performance to have been aided by the bullishness surrounding the tanker market as both crude and 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 should have been boosted.

Voyage expenses are likely to have been high due to elevated bunker prices. Costs are likely to have been steep in fourth-quarter 2022 at ASC due to supply-chain troubles.

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.

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 Zacks Rank #2 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.

Expeditors International of Washington (EXPD - Free Report) currently has an Earnings ESP of +9.04% and a Zacks Rank of 3. EXPD will release fourth-quarter 2022 results on Feb 21.

The company has a current Zacks Consensus Estimate for earnings of $1.88 per share, which has been revised 8.67% upward in the past 60 days. EXPD has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 22.1%.

Copa Holdings (CPA - Free Report) currently has an Earnings ESP of +0.42% and flaunts a Zacks Rank #1. CPA will release fourth-quarter 2022 results on Feb 15.

We expect Copa’s fourth-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 48.95%. 

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

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