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Will Omicron-Led Woes Mar Star Bulk's (SBLK) Q4 Earnings?

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Star Bulk Carriers (SBLK - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 16, after market close.

Star Bulk’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters (missing the consensus mark on the other two occasions), the average beat being 1.3%.

Star Bulk Carriers Corp. Price and EPS Surprise

Star Bulk Carriers Corp. Price and EPS Surprise

Star Bulk Carriers Corp. price-eps-surprise | Star Bulk Carriers Corp. Quote

The Zacks Consensus Estimate for SBLK’s fourth-quarter earnings has been revised 3.1% downward in the past 60 days.

Against this backdrop, let’s take a look at the factors that are expected to have impacted Star Bulk’s fourth-quarter performance:

We expect Star Bulk’s fourth-quarter 2021 performance to have been hurt by omicron-led crisis. Disruption in operations due to crew shortage is likely to have dented the performance in the to-be-reported quarter. High fuel costs are also likely to have hurt the bottom line in the to-be-reported quarter.

However, high travel demand during the holiday period is likely to have boosted voyage revenues in the December quarter. Continued fleet expansion initiatives are also likely to have driven Star Bulk’s performance in the to-be-reported quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for Star Bulk 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. However, that is not the case here. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Star Bulk has an Earnings ESP of -1.12% as the Most Accurate Estimate is 2 cents below the Zacks Consensus Estimate of $2.52. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

Zacks Rank: Star Bulk carries a Zacks Rank #5 (Strong Sell), currently.

Highlights of Q3 Earnings

In the last reported quarter, Star Bulk delivered a positive earnings surprise of 1.39%. Total revenues of $415.7 million beat the Zacks Consensus Estimate of $406 million and surged more than 100% year over year.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. and Expeditors International of Washington, Inc. (EXPD - Free Report)   as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank #3. Eagle Bulk will report fourth-quarter results on Mar 3.

Eagle Bulk’s shares have gained 90% in a year. It has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average. Strong trading volumes are likely to have boosted EGLE’s performance in the to-be-reported quarter.

Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player. Expeditors will release fourth-quarter 2021 results on Feb 22.

EXPD is being aided by an uptick in airfreight revenues. Due to the coronavirus-induced imbalance between scheduled capacity and demand, EXPD is using charters to meet customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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