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What's in Store for Seanergy Maritime (SHIP) in Q2 Earnings?

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Seanergy Maritime Holdings (SHIP - Free Report) is scheduled to report second-quarter 2020 results on Aug 5, before market open.

The company has a disappointing earnings record as its bottom line managed to outpace the Zacks Consensus Estimate in only one of the last four quarters (missed estimates twice and matched the same in the remaining quarter). The average miss is 14.8%.

Moreover, the Zacks Consensus Estimate for the to-be-reported quarter’s bottom line has deteriorated from earnings per share of $1.60 to a loss of 52 cents over the past 60 days.

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

Given the prevalence of the coronavirus pandemic, multiple sailings were already canceled in the second quarter. Moreover, vessels were rapidly idled. Consequently, revenues from vessels are likely to have decreased in the quarter to be reported.

The company’s fleet performance is also likely to have been severely impacted by the disruptions in iron ore trade due to coronavirus-induced slowdown in global trade and industrial production. However, vessel operating expenses might have declined year over year in the June quarter, thereby aiding the bottom line. This uptrend was mainly owing to lower expenses on maintenance and repair as many vessels were underutilized or idled in the concerned three-month period because of the pandemic. Further, low fuel costs might have supported earnings growth.

Earnings Whispers

Our proven model does not predict a bottom-line outperformance for Seanergy Maritime 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 a positive surprise. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Seanergy 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: Seanergy Maritime carries a Zacks Rank #5 (Strong Sell), currently.

Highlights of Q1

In first-quarter 2020, Seanergy Maritime’s earnings of 31 cents per share met the Zacks Consensus Estimate. However, total revenues of $13.3 million fell 16.7% year over year and also lagged the Zacks Consensus Estimate of $16.5 million.

Stocks to Consider

Investors interested in the broader Transportation sector may check out a few stocks worth considering like Expeditors International of Washington (EXPD - Free Report) , Golar LNG (GLNG - Free Report) and Copa Holdings (CPA - Free Report) as these possess the perfect combination of elements to beat estimates this earnings season.

Expeditors have an Earnings ESP of +6.87% and a Zacks Rank of 3, currently. This company is set to release second-quarter financial numbers on Aug 4.

Golar LNG has an Earnings ESP of +7.64% and a Zacks Rank #3 at present.

Copa Holdings has an Earnings ESP of +19.18% and is Zacks #3 Ranked, presently. The company will release second-quarter 2020 results on Aug 5.

 

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