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The Zacks Consensus Estimate for third-quarter earnings has been revised 5.4% upward to 39 cents per share over the past 60 days. Additionally, the company has an impressive earnings history. Its bottom line outperformed estimates in each of the last four quarters. The average beat is 39.3%.
Against this backdrop, let’s take a look at the factors that are likely to have impacted Safe Bulkers’ September-quarter performance.
We expect the company’s performance to have been boosted by the improved conditions in the dry bulk industry. The northward movement of the Baltic Dry Index — a proxy for global dry freight rates across 23 routes — buoys optimism for the dry bulk market.
Revenues are likely to have improved in the to-be-reported quarter from the year-ago period’s reading owing to the increased time charter equivalent (TCE) rate as a result of better market conditions.
However, with oil price moving north, high fuel costs are likely to have dented bottom-line growth in the to-be-reported quarter. This is because expenses associated with oil are considered one of the major input costs for any transportation company and shipping stocks are no exception.
What Does the Zacks Model Say?
The proven Zacks model predicts an earnings beat for Safe Bulkers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Safe Bulkers has an Earnings ESP of +3.45% as the Most Accurate Estimate is currently pegged at 40 cents, a penny above 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: Safe Bulkers sports a Zacks Rank #1, currently.
Highlights of Q2 Earnings
Safe Bulkers’ second-quarter earnings per share (excluding 4 cents from non-recurring items) of 31 cents were 6 cents above the Zacks Consensus Estimate. The bottom line surged in excess of 100% year over year. Revenues of $166.8 million not only increased 61.9% year over year but also outpaced the Zacks Consensus Estimate of $70.3 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like Copa Holdings (CPA - Free Report) , Azul (AZUL - Free Report) and Genko Shipping & Trading (GNK - Free Report) , which possess the right combination of elements to beat on earnings this reporting cycle.
Copa Holdings has an Earnings ESP of +25.74% and is Zacks #3 Ranked, presently. The company will release third-quarter 2021 results on Nov 17.
Azul has an Earnings ESP of +3.70% and is Zacks #3 Ranked, presently. The company will release third-quarter 2021 results on Nov 11.
Genko Shipping & Trading has an Earnings ESP of +3.59% and is Zacks #2 Ranked, presently. The company will release third-quarter 2021 results on Nov 3.
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Safe Bulkers (SB) to Report Q3 Earnings: A Beat in Store?
Safe Bulkers (SB - Free Report) is scheduled to report third-quarter 2021 results on Nov 3, after the market closes.
The Zacks Consensus Estimate for third-quarter earnings has been revised 5.4% upward to 39 cents per share over the past 60 days. Additionally, the company has an impressive earnings history. Its bottom line outperformed estimates in each of the last four quarters. The average beat is 39.3%.
Safe Bulkers, Inc Price and EPS Surprise
Safe Bulkers, Inc price-eps-surprise | Safe Bulkers, Inc Quote
Against this backdrop, let’s take a look at the factors that are likely to have impacted Safe Bulkers’ September-quarter performance.
We expect the company’s performance to have been boosted by the improved conditions in the dry bulk industry. The northward movement of the Baltic Dry Index — a proxy for global dry freight rates across 23 routes — buoys optimism for the dry bulk market.
Revenues are likely to have improved in the to-be-reported quarter from the year-ago period’s reading owing to the increased time charter equivalent (TCE) rate as a result of better market conditions.
However, with oil price moving north, high fuel costs are likely to have dented bottom-line growth in the to-be-reported quarter. This is because expenses associated with oil are considered one of the major input costs for any transportation company and shipping stocks are no exception.
What Does the Zacks Model Say?
The proven Zacks model predicts an earnings beat for Safe Bulkers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Safe Bulkers has an Earnings ESP of +3.45% as the Most Accurate Estimate is currently pegged at 40 cents, a penny above 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: Safe Bulkers sports a Zacks Rank #1, currently.
Highlights of Q2 Earnings
Safe Bulkers’ second-quarter earnings per share (excluding 4 cents from non-recurring items) of 31 cents were 6 cents above the Zacks Consensus Estimate. The bottom line surged in excess of 100% year over year. Revenues of $166.8 million not only increased 61.9% year over year but also outpaced the Zacks Consensus Estimate of $70.3 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like Copa Holdings (CPA - Free Report) , Azul (AZUL - Free Report) and Genko Shipping & Trading (GNK - Free Report) , which possess the right combination of elements to beat on earnings this reporting cycle.
Copa Holdings has an Earnings ESP of +25.74% and is Zacks #3 Ranked, presently. The company will release third-quarter 2021 results on Nov 17.
Azul has an Earnings ESP of +3.70% and is Zacks #3 Ranked, presently. The company will release third-quarter 2021 results on Nov 11.
Genko Shipping & Trading has an Earnings ESP of +3.59% and is Zacks #2 Ranked, presently. The company will release third-quarter 2021 results on Nov 3.