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What's in the Offing for Navios Maritime's (NMM) Q3 Earnings?

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Navios Maritime Partners L.P. (NMM - Free Report) is scheduled to release third-quarter 2021 earnings on Nov 10, before market open.

The company has an impressive track record with respect to the bottom line. Its earnings outperformed the Zacks Consensus Estimate in three of the last four quarters. The shipping company reported lower-than-expected earnings per share for the remaining quarter. It has a trailing four-quarter earnings surprise of 36.6%, on average.

 

The Zacks Consensus Estimate for third-quarter earnings has been revised 1.8% upward over the past 60 days.

Against this backdrop, let’s discuss the factors that might have impacted the company’s performance in the September quarter.

Navios Maritime’s third-quarter performance is likely to have been boosted by a year-over-year strength 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.

Time charter and voyage revenues are likely to have inched up in the September quarter, primarily driven by an increased fleet size. However, we expect Navios Maritime’s third-quarter bottom-line performance to have been hurt by escalated time charter and voyage expenses. With oil price moving north, fuel costs are shooting up. This, in turn, is likely to have elevated the operating costs in the to-be-reported quarter.

Moreover, the Delta-variant-induced operational disruptions are likely to have negatively impacted the shipping company’s performance in the September quarter.

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% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of $3.44. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Navios Maritime sports a Zacks Rank #1 currently.

Highlights of Q2 Earnings

Navios Maritime’s second-quarter earnings of $4.31 per share surpassed the Zacks Consensus Estimate of $2.38. Total revenues of $152 million increased 226.6% year over year and also surpassed the Zacks Consensus Estimate of $146 million.

Stocks to Consider

Investors interested in the broader Transportation  sector may consider Diana Shipping (DSX - Free Report) , Copa Holdings (CPA - Free Report) and Star Bulk Carriers (SBLK - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Diana Shipping has an Earnings ESP of +5.88% and a Zacks Rank #2, presently. The company will release third-quarter 2021 results on Nov 17.

Copa Holdings has an Earnings ESP of +25.74% and a Zacks Rank of 3 at present. The company is scheduled to report third-quarter 2021 earnings numbers on Nov 17.

Star Bulk Carriers has an Earnings ESP of +1.81% and is currently a #2 Ranked player. The company will release third-quarter 2021 results on Nov 16.

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