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Factors to Know Ahead of Global Ship Lease (GSL) Q1 Earnings

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Global Ship Lease (GSL - Free Report) is scheduled to release first-quarter 2021 results on May 10, before market open.

The shipping company has a stellar surprise record as its earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 27.5%.

Moreover, the Zacks Consensus Estimate for first-quarter earnings has been revised 25.6% upward over the past 90 days.

Global Ship Lease, Inc. Price and EPS Surprise

Global Ship Lease, Inc. Price and EPS Surprise

Global Ship Lease, Inc. price-eps-surprise | Global Ship Lease, Inc. Quote

Aspects Likely to Impact Q1 Results

We expect Global Ship Lease’s first-quarter bottom-line performance to have been affected by higher vessel operating expenses, mainly due to additional ownership days. Moreover, coronavirus-induced supply-chain disruptions and the resultant delays in crew replacement as well as the delivery of spares are likely to have dented this shipping company’s first quarter performance.

However, the wave of optimism surrounding the containership market is likely to have aided the company’s first-quarter performance. High container rates are likely to have boosted the top line. The already high rates were further pushed up by the Suez Canal congestion in March-end. The incident also tightened containership supply and is likely to get partially reflected in the results.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Global Ship Lease 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, which is not the case here as shown below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Global Ship Lease has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 49 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Global Ship Lease carries a Zacks Rank #3, currently.

Highlights of Q4 Earnings

In the last reported quarter, Global Ship Lease’s earnings of 38 cents per share edged past the Zacks Consensus Estimate by a penny. Quarterly revenues of $70 million too surpassed the Zacks Consensus Estimate of $68 million.

Stocks to Consider

Investors interested in the broader  Transportation  sector may consider  Eagle Bulk Shipping  (EGLE - Free Report) ,  Euronav NV  (EURN - Free Report) and  GasLog LP  as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Eagle Bulk has an Earnings ESP of +64.52% and a Zacks Rank of 1, currently.

Euronav has an Earnings ESP of +7.14% and a Zacks Rank #3, currently.
GasLog has an Earnings ESP of +20.69% and a Zacks Rank #2 at present.
Each of the companies will release first-quarter 2021 results on May 6.

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