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Transport Stocks Earnings Slated on Oct 26: NSC, TRN & More

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The Q3 earnings season is currently underway with several companies having reported their financial results so far. With more and more companies set to report their quarterly numbers in the weeks to come, we expect to get a clearer picture of the overall trend in this earnings cycle.

The transportation sector (one of the 16 Zacks sectors) is a highly diversified one. The sector, which includes airline companies, truckers, shippers and railroads to name a few, has fallen on hard times owing to a plethora of challenges like declining travel demand due to the surge in terror attacks, declining coal shipments, and driver shortages among others.

The headwinds are primarily responsible for the gloomy forecast for this sector. According to our latest Earnings Preview report, the S&P 500 participants in the transportation sector are likely to end the current earnings cycle with a 14.3% decline in bottom line as against a 12.4% decrease in Q2. The transportation sector is projected to be one of the seven sectors to end Q3 with earnings decline. As has been the case in the past few quarters, the oil/energy sector is projected to be the worst performer with its earnings likely to plunge 72.6% in Q3.

In view of the aforesaid factors, it goes without saying that investors are eagerly waiting to see how the companies from the transportation sector perform this time around. Let’s take a look at some of these companies might fare when they report their financial numbers on Oct 26.

Based in Norfolk, VA, NorfolkSouthern Corporation (NSC - Free Report) is a major player in the railroad space. Our quantitative model does not conclusively show that Norfolk Southern is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case for the railroad operator. The company has a Zacks Rank #3 and an Earnings ESP of 0.00%. (Read more: Can Norfolk Southern Pull a Surprise in Q3 Earnings?).

NORFOLK SOUTHRN Price and EPS Surprise

 

NORFOLK SOUTHRN Price and EPS Surprise | NORFOLK SOUTHRN Quote

You can see the complete list of today’s Zacks #1 Rank stocks here.  

Trinity Industries Inc. (TRN - Free Report) is a Texas-based company engaged in providing products and services to the energy, transportation, chemical, and construction sectors in the U.S. and worldwide. Our model does not indicate that the company is likely to beat earnings in Q3 as it has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).  As it is, we caution against Sell-rated stocks (Zacks Rank 4 and 5) going into the earnings announcement (Read more: Will Trinity Industries Q3 Earnings Disappoint?).

TRINITY INDS IN Price and EPS Surprise

 

TRINITY INDS IN Price and EPS Surprise | TRINITY INDS IN Quote

Kirby Corporation (KEX - Free Report) , based in Houston, TX, is a domestic tank barge operator that transports bulk liquid offerings throughout the Mississippi River System, the Gulf Intracoastal Waterway, along all three U.S. coasts and in Alaska and Hawaii. Our model does not indicate that the company is likely to beat earnings this quarter. This is because Kirby Corporation is a Zacks Rank #4 (Sell) stock and has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 57 cents per share.

KIRBY CORP Price and EPS Surprise

 

KIRBY CORP Price and EPS Surprise | KIRBY CORP Quote

Knight Transportation Inc. (KNX - Free Report) is a short to medium haul, dry van truckload carrier operating in the western region of the U.S. Our model does not indicate that the company is likely to beat earnings this quarter. This is because Knight Transportationis a Zacks Rank #4 stock and has an Earnings ESP of -6.90% as the Most Accurate estimate of 27 cents per share is lower than the Zacks Consensus Estimate by 2 cents.

KNIGHT TRANSN Price and EPS Surprise

 

KNIGHT TRANSN Price and EPS Surprise | KNIGHT TRANSN Quote

Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises

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