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Transportation Stocks Q4 Earnings on Feb 6: NAT, SALT, YRCW
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The Q4 earnings season is in full swing with 219 S& P 500 players having already unveiled their quarterly numbers. As per our latest Earnings Outlook report, the picture that is unfolding is quite impressive. The bottom line has expanded 5.4%, while the top line has grown 3.5% (both on a year-over-year basis) for the above companies. The report further states that 64.8% and 53.4% companies have reported better-than-expected earnings and revenues, respectively. According to the analysis, 37.4% companies have outpaced on both the top- and bottom-line front.
This indicates that the Q4 reporting cycle on track to end with the highest growth seen in the last two years. With the overall picture so favorable, it is of little wonder that currently 13 of the 16 Zacks sectors are exhibiting earnings growth. Unfortunately, the widely-diversified transportation sector does not share this healthy picture.
As of Feb 1, 2017, 80% of the transportation S&P 500 companies (accounting for 94.8% in terms of market capitalization) have unveiled their latest quarterly numbers. The bottom line for these companies has declined 18.7%. In fact, we have already seen players like United Continental Holdings (UAL - Free Report) and Kansas City Southern reporting significant year-over-year bottom-line deterioration in Q4.
Increasing labor costs have hurt the bottom line for most of the sector participants, particularly airlines. The picture with respect to revenues is much better. The top line for the sector is projected to expand at 5.3%.
Given this backdrop, investors interested in the transportation space will keenly await Q4 reports from key sector participants like Nordic American Tankers Limited (NAT - Free Report) , Scorpio Bulkers Inc. and YRC Worldwide Inc. , scheduled for Feb 6.
According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nordic American Tankers Limited is engaged in acquiring, disposing, owning, leasing and chartering multiple double hull Suezmax oil tankers. It has an Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate) and a Zacks Rank #4 (Sell). Please note that we caution against Sell-rated (#4 or 5) stocks going into the earnings announcement.
Nordic American Tankers Limited Price and EPS Surprise
Monaco-based, Scorpio Bulkers Inc. provides marine transportation of dry bulk commodities. This shipping company is unlikely to outperform on the bottom-line front as per our quantitative model. Scorpio Bulkers has an Earnings ESP of -8.00% and carries a Zacks Rank # 3 .
YRC Worldwide Inc.is the holding company for a portfolio of less-than-truckload companies including YRC Freight, YRC Reimer, Holland, Reddaway and New Penn. The company has an Earnings ESP of -11.11% and a Zacks Rank #3. The unfavorable combination makes earnings beat improbable.
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Transportation Stocks Q4 Earnings on Feb 6: NAT, SALT, YRCW
The Q4 earnings season is in full swing with 219 S& P 500 players having already unveiled their quarterly numbers. As per our latest Earnings Outlook report, the picture that is unfolding is quite impressive. The bottom line has expanded 5.4%, while the top line has grown 3.5% (both on a year-over-year basis) for the above companies. The report further states that 64.8% and 53.4% companies have reported better-than-expected earnings and revenues, respectively. According to the analysis, 37.4% companies have outpaced on both the top- and bottom-line front.
This indicates that the Q4 reporting cycle on track to end with the highest growth seen in the last two years. With the overall picture so favorable, it is of little wonder that currently 13 of the 16 Zacks sectors are exhibiting earnings growth. Unfortunately, the widely-diversified transportation sector does not share this healthy picture.
As of Feb 1, 2017, 80% of the transportation S&P 500 companies (accounting for 94.8% in terms of market capitalization) have unveiled their latest quarterly numbers. The bottom line for these companies has declined 18.7%. In fact, we have already seen players like United Continental Holdings (UAL - Free Report) and Kansas City Southern reporting significant year-over-year bottom-line deterioration in Q4.
Increasing labor costs have hurt the bottom line for most of the sector participants, particularly airlines. The picture with respect to revenues is much better. The top line for the sector is projected to expand at 5.3%.
Given this backdrop, investors interested in the transportation space will keenly await Q4 reports from key sector participants like Nordic American Tankers Limited (NAT - Free Report) , Scorpio Bulkers Inc. and YRC Worldwide Inc. , scheduled for Feb 6.
According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nordic American Tankers Limited is engaged in acquiring, disposing, owning, leasing and chartering multiple double hull Suezmax oil tankers. It has an Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate) and a Zacks Rank #4 (Sell). Please note that we caution against Sell-rated (#4 or 5) stocks going into the earnings announcement.
Nordic American Tankers Limited Price and EPS Surprise
Nordic American Tankers Limited Price and EPS Surprise | Nordic American Tankers Limited Quote
Monaco-based, Scorpio Bulkers Inc. provides marine transportation of dry bulk commodities. This shipping company is unlikely to outperform on the bottom-line front as per our quantitative model. Scorpio Bulkers has an Earnings ESP of -8.00% and carries a Zacks Rank # 3 .
Scorpio Bulkers Inc. Price and EPS Surprise
Scorpio Bulkers Inc. Price and EPS Surprise | Scorpio Bulkers Inc. Quote
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
YRC Worldwide Inc.is the holding company for a portfolio of less-than-truckload companies including YRC Freight, YRC Reimer, Holland, Reddaway and New Penn. The company has an Earnings ESP of -11.11% and a Zacks Rank #3. The unfavorable combination makes earnings beat improbable.
YRC Worldwide, Inc. Price and EPS Surprise
YRC Worldwide, Inc. Price and EPS Surprise | YRC Worldwide, Inc. Quote
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>