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What's in Store for Grindrod Shipping (GRIN) in Q1 Earnings?

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Grindrod Shipping Holdings Ltd. (GRIN - Free Report) is scheduled to release first-quarter 2022 earnings on May 24, after market close.

The Zacks Consensus Estimate for first-quarter earnings has risen 7.1% to $1.36 in the past 60 days.   

Against this backdrop, let’s discuss the factors that might have impacted Grindrod Shipping’s performance in the March quarter.

With the gradual resumption of economic activities, the world trade picked up the pace, which in turn, is likely to aid the first-quarter results of shipping stocks like Grindrod Shipping. This is because the shipping industry is responsible for transporting an enormous proportion of goods involved in world trade.

The bullish sentiment surrounding the Drybulk market is likely to have boosted Grindrod Shipping’s top line in the to-be-reported quarter. Revenues are likely to have increased owing to improved market conditions in the drybulk business.

However, we expect GRIN’s first-quarter bottom-line performance to have been hurt by escalated voyage expenses. A sharp rise in oil price is augmenting fuel costs. This, in turn, is likely to have jacked up the operating costs in the to-be-reported quarter.

What Does the Zacks Model Say?

Our proven model predicts an earnings beat for Grindrod 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 an earnings beat, which is the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Grindrod Shipping has an Earnings ESP of +13.97% as the Most Accurate Estimate is $1.55, above the Zacks Consensus Estimate of $1.36. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Grindrod Shipping currently sports a Zacks Rank of 1.

Highlights of Q4 Earnings

Grindrod Shipping's fourth-quarter 2021 earnings of $2.75 per share surpassed the Zacks Consensus Estimate of $2.50. However, total revenues of $115 million missed the Zacks Consensus Estimate of $119 million.

Sectorial Snapshots

Let’s look at the earnings results of a few companies in the broader Transportation sector, which already reported first-quarter 2022 results.

J.B. Hunt Transport Services (JBHT - Free Report) reported better-than-expected first-quarter 2022 earnings. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.

Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3.

CSX Corp’s (CSX - Free Report) first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.

Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.

United Airlines (UAL - Free Report) incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred by UAL as coronavirus concerns continue to weigh on air-travel demand.

Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.