Back to top

Image: Bigstock

Euroseas (ESEA) to Report Q3 Earnings: What's in Store?

Read MoreHide Full Article

Euroseas (ESEA - Free Report) is slated to release third-quarter 2022 earnings numbers on Nov 14, before market open.

ESEA’s earnings surpassed the Zacks Consensus Estimate in two of the preceding four quarters, missing the same in the other two. The Zacks Consensus Estimate for the September-quarter earnings has been stable at $3.47 over the past 60 days.

Euroseas Ltd. Price and EPS Surprise

Euroseas Ltd. Price and EPS Surprise

Euroseas Ltd. price-eps-surprise | Euroseas Ltd. Quote

Against this backdrop, let’s unearth the factors that are likely to have impacted Euroseas’ performance in the to-be-reported quarter.

Bullishness surrounding the containership market is a huge boon for Euroseas and is likely to have boosted its top line in the soon-to-be-reported quarter. Increased fleet utilization with the gradual resumption of economic activities and an uptick in world trade are likely to get reflected in ESEA’s impending results. High container rates are also likely to have driven its top line.

On the flip side, high fuel costs due to the escalation in oil price are likely to have hurt the bottom-line performance in the to-be-reported quarter. Vessel operating expenses, including costs of crew, lubricating oil etc., are also likely to have been steep in the September quarter.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Euroseas 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, as elaborated below. You can seethe complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Euroseas has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.47. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Euroseas carries a Zacks Rank #3.

Q3 Performances of Some Transportation Companies

Delta Air Lines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, muted in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by high air-travel demand, total revenues increased more than 52% on a year-over-year basis.

United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. Upbeat air-travel demand aided results.

In the year-ago quarter, UAL incurred a loss of $1.02 per share as air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable period at UAL since the onset of the pandemic.

Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an uptick in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.

J.B. Hunt Transport Services (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the respective Zacks Consensus Estimate. JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.

JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across the Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.

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

Published in