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What's in the Offing for Navios Maritime (NMM) in Q1 Earnings?

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Navios Maritime Partners L.P. (NMM - Free Report) is scheduled to release first-quarter 2021 earnings numbers on Apr 29, before market open.  We note that Master limited partnerships (or MLPs) differ from regular stocks because interests in them are referred to as units. Notably, unitholders (not shareholders) are partners in the business.

The company has a disappointing track record with respect to the bottom line, having outperformed the Zacks Consensus Estimate in two of the last four quarters. It reported lower-than-expected earnings per share in the other two quarters. It has a trailing four-quarter earnings surprise of 19.9%, on average.

Given this backdrop, let’s discuss the factors that might have influenced the company’s performance in the March-end quarter.

Navios Maritime Partners LP Price and EPS Surprise

 

Navios Maritime Partners LP Price and EPS Surprise

Navios Maritime Partners LP price-eps-surprise | Navios Maritime Partners LP Quote

 

Navios Maritime’s first-quarter performance is likely to have been dented by year-over-year weakness in the time charter equivalent rate (TCE). TCE refers to voyage and time charter revenues less voyage expenses during a time period divided by the number of available days.

Additionally, Navios Maritime’s bottom-line number is likely to reflect the negative impact of higher direct vessel expenses.

Time charter and voyage revenues are likely to have inched up in the March-end quarter, primarily driven by increase in fleet size.

Additionally, sale of four vessels in the March-end quarter is likely to have strengthened the company’s cash balance.

Earnings Whispers

The proven Zacks model does not predict an earnings beat for Navios Maritime this time around. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Navios Maritime has an earnings ESP of +0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Navios Maritime carries a Zacks Rank #2.

Highlights of Q4 Earnings

In the last reported quarter, the company reported a negative earnings surprise of 94.4%. Moreover, revenues increased 13% year over year to $69.2 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider SkyWest, Inc. (SKYW - Free Report) , Werner Enterprises, Inc. (WERN - Free Report) and Westinghouse Air Brake Technologies Corporation (WAB - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

SkyWest has an Earnings ESP of +35.34% and a Zacks Rank of 3, currently. The company is set to release first-quarter 2021 earnings numbers on Apr 29.

Werner has an Earnings ESP of +2.78% and a Zacks Rank of 3 at present. The company will release first-quarter 2021 results on Apr 28.

Westinghouse Air Brake Technologies has an Earnings ESP of +5.33% and is Zacks #2 Ranked, presently. The company will release first-quarter 2021 results on Apr 29.

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