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Genco Shipping (GNK) to Report Q2 Earnings: A Beat in Store?

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Genco Shipping & Trading Limited (GNK - Free Report) is scheduled to release second-quarter 2021 results on Aug 4, after market close.

The shipping company has an appreciative surprise record as its earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (lagging the same on one occasion). The average beat is 29.4%.

The Zacks Consensus Estimate for second-quarter earnings has been stable at 72 cents over the past 60 days.

Against this backdrop, let’s delve deeper to find out the factors responsible for impacting Genco Shipping’s second-quarter 2021 results.

Bullishness surrounding the dry bulk market is a huge boon for Genco Shipping and is likely to have boosted its top line in the soon-to-be-reported quarter. The upward movement of the Baltic Dry Index — a proxy for global dry freight rates across 23 routes — reflects the optimism surrounding the dry bulk market.

Increased fleet utilization with the gradual resumption of economic activities and an uptick in world trade are likely to get reflected in the company’s impending results. The Zacks Consensus Estimate for second-quarter fleet utilization is currently pegged at 99%, indicating growth from 97.8% recorded in first-quarter 2021.

On the flip side, COVID-related expenses and higher crew-related costs might have increased the daily vessel-operating expenses. This, in turn, is likely to have dented the bottom-line performance in the to-be-reported quarter.

Earnings Whispers

Our proven model predicts an earnings beat for Genco Shipping 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Genco Shipping has an Earnings ESP of +11.81% as the Most Accurate Estimate is 9 cents higher than the Zacks Consensus Estimate of 72 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Genco Shipping sports a Zacks Rank of 1, currently.

Highlights of Q1 Earnings

Genco Shipping’s first-quarter earnings (excluding one cent from non-recurring items) of 6 cents per share surpassed the Zacks Consensus Estimate of 3 cents. Total revenues of $52.5 million decreased 46.2% year over year but surpassed the Zacks Consensus Estimate of $47.7 million.

Sectorial Snapshots

Let’s look into some of the other recently released earnings reports from companies within the Zacks Transportation sector.

Knight-Swift Transportation Holdings (KNX - Free Report) , presently carrying a Zacks Rank #2 (Buy), reported second-quarter 2021 earnings (excluding 6 cents from non-recurring items) of 98 cents per share, surpassing the Zacks Consensus Estimate of 87 cents. Total revenues of $1,315.7 million also outperformed the Zacks Consensus Estimate of $1,300.8 million. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

United Parcel Service (UPS - Free Report) , currently carrying a Zacks Rank #3, reported second-quarter 2021 earnings (excluding a penny from non-recurring items) of $3.06 per share, beating the Zacks Consensus Estimate of $2.75. Quarterly revenues of $23,424 million also outperformed the Zacks Consensus Estimate of $23,085.4 million.

SkyWest (SKYW - Free Report) , currently sporting a Zacks Rank #1, reported second-quarter 2021 earnings of $1.22 per share, beating the Zacks Consensus Estimate of 28 cents. Quarterly earnings also came against the year-ago loss of 51 cents. Revenues in the June quarter summed $657 million, not only surpassing the Zacks Consensus Estimate of $581.5 million but also increasing 87.7% year over year.