Golden Ocean Group (GOGL - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 16.
The Zacks Consensus Estimate for fourth-quarter earnings has been steady at 75 cents over the past 60 days. The consensus mark for revenues is currently pegged at $284.30 million.
Against this backdrop, let’s discuss the factors that might have impacted Golden Ocean’s performance in the December quarter.
We expect GOGL’s fourth-quarter performance to have been driven by the gradual uptick in economic activities in the United States. This, in turn, might have perked up its revenues from the year-ago quarter’s reported figure despite the omicron-induced uncertainty.
The optimism surrounding the Drybulk market is likely to have boosted Golden Ocean’s top line in the to-be-reported quarter. Revenues are likely to have increased owing to favorable Drybulk freight rates. However, we expect GOGL’s fourth-quarter bottom-line performance to have been hurt by an escalated time charter and voyage expenses. Steep oil price is flaring up fuel costs. This, in turn, is likely to have pushed up the operating costs in the to-be-reported quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Golden Ocean 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. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Golden Ocean has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 75 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Golden Ocean currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
Golden Ocean's third-quarter earnings (excluding a couple of cents from non-recurring items) of 95 cents per share beat the Zacks Consensus Estimate of 55 cents. Total revenues of $387.6 million surpassed the Zacks Consensus Estimate of $251.8 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. . Grindrod Shipping (GRIN - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank of 3. EGLE will report fourth-quarter results on Mar 3.
The stock has gained 90% in a year. Eagle Bulk has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average. Strong trading volumes are likely to have boosted EGLE’s performance in the to-be-reported quarter.
Grindrod Shipping currently has an Earnings ESP of +10.62% and a Zacks Rank of 3. GRIN will report fourth-quarter results on Feb 16.
Grindrod Shipping’sfourth-quarter results are likely to be aided by the improved market sentiments surrounding the Drybulk market. Uptick in trading volumes is also likely to have contributed to GRIN’s fourth-quarter performance.
Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player. Expeditors will release fourth-quarter 2021 results on Feb 22.
EXPD is being aided by higher airfreight revenues. Due to the coronavirus-induced imbalance between scheduled capacity and demand, Expeditors is using charters to meet the customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Golden Ocean Group (GOGL - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 16.
The Zacks Consensus Estimate for fourth-quarter earnings has been steady at 75 cents over the past 60 days. The consensus mark for revenues is currently pegged at $284.30 million.
Against this backdrop, let’s discuss the factors that might have impacted Golden Ocean’s performance in the December quarter.
We expect GOGL’s fourth-quarter performance to have been driven by the gradual uptick in economic activities in the United States. This, in turn, might have perked up its revenues from the year-ago quarter’s reported figure despite the omicron-induced uncertainty.
The optimism surrounding the Drybulk market is likely to have boosted Golden Ocean’s top line in the to-be-reported quarter. Revenues are likely to have increased owing to favorable Drybulk freight rates. However, we expect GOGL’s fourth-quarter bottom-line performance to have been hurt by an escalated time charter and voyage expenses. Steep oil price is flaring up fuel costs. This, in turn, is likely to have pushed up the operating costs in the to-be-reported quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Golden Ocean 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. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Golden Ocean has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 75 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Golden Ocean currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
Golden Ocean's third-quarter earnings (excluding a couple of cents from non-recurring items) of 95 cents per share beat the Zacks Consensus Estimate of 55 cents. Total revenues of $387.6 million surpassed the Zacks Consensus Estimate of $251.8 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. . Grindrod Shipping (GRIN - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank of 3. EGLE will report fourth-quarter results on Mar 3.
The stock has gained 90% in a year. Eagle Bulk has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average. Strong trading volumes are likely to have boosted EGLE’s performance in the to-be-reported quarter.
Grindrod Shipping currently has an Earnings ESP of +10.62% and a Zacks Rank of 3. GRIN will report fourth-quarter results on Feb 16.
Grindrod Shipping’sfourth-quarter results are likely to be aided by the improved market sentiments surrounding the Drybulk market. Uptick in trading volumes is also likely to have contributed to GRIN’s fourth-quarter performance.
Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player. Expeditors will release fourth-quarter 2021 results on Feb 22.
EXPD is being aided by higher airfreight revenues. Due to the coronavirus-induced imbalance between scheduled capacity and demand, Expeditors is using charters to meet the customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Get the latest research report on EXPD - FREE
Get the latest research report on GOGL - FREE
Get the latest research report on GRIN - FREE