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Transport Stocks Q2 Earnings in Queue: EXPD, ASC & More

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The Q2 earnings season is in its last leg as far as the S&P 500 companies in the transportation segment (which is one of the 16 Zacks sectors) are concerned. As per our latest Earnings trends report, 93.3% the S&P 500 transport companies (accounting for 97.8% in terms of market capitalization) reported their numbers as of Jul 29.

The sector participants are facing a number of headwinds, which are reflected in the fact that the year-over-year earnings growth rate is -12.5% for this highly diversified space. However, the sector has seen a healthy proportion of companies (64.3%) beating the Zacks Consensus Estimate with respect to the bottom line.  The impressive beat ratio has emanated from bottom-line out performances from key sector players like Delta Air Lines (DAL - Free Report) , Ryder System (R - Free Report) and JetBlue Airways Corporation (JBLU - Free Report) .

Coming to the entire S&P 500 space, as of Jul 29, total earnings declined 3.3% on a year-over-year basis which however is an improvement over the 1Q16 figure (at this stage) of -7.3%.

Again, the earnings picture at the end of Q2 is projected to be a much improved one from that observed in 1Q16. The bottom line is expected to shrink 3.4% at the end of the earnings season for the index compared with the 6.5% deceleration observed in 1Q16.

The transportation sector is one of the eight Zacks sectors projected to end Q2 with negative earnings growth rate (12.5%) with the Energy sector expected to be the worst performer.

The current week will see a plethora of reports, over 1000 companies scheduled to release their quarterly reports, including 116 S&P 500 players. Investors interested in the transportation space will keenly await reports from key sector participants this week.

Based in Seattle, WA, Expeditors International of Washington Inc. (EXPD - Free Report) is a leading third-party logistics (3PL) provider. The company, which will report its second-quarter results on Aug 2, is engaged in the business of global logistics management, including international freight forwarding and consolidation, for both air and ocean freight.According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. Previously, the company had an Earnings ESP of +3.45% and a Zacks Rank #3, but currently the Earnings ESP measure has changed to +1.70% (the Most Accurate estimate of 60 cents is a penny above the Zacks Consensus Estimate). The Zacks Rank remains the same. Despite the change in the Earnings ESP measure, an earnings beat is on the cards for the company, as per our quantitative model (read more: Expeditors Likely to Top Q2 Earnings: Stock to Gain?).

EXPEDITORS INTL Price and EPS Surprise

EXPEDITORS INTL Price and EPS Surprise | EXPEDITORS INTL Quote

Ardmore Shipping Corporation (ASC - Free Report) ,which will report quarterly numbers on Aug 2, engages in the ownership and operation of product and chemical tankers. Even though the company has a Zacks Rank #3, its Earnings ESP of -15.39% (Most Accurate estimate is 2 cents below the Zacks Consensus Estimate of 13 cents) complicates matters and makes an earnings beat unlikely.

ARDMORE SHIPPIN Price and EPS Surprise

ARDMORE SHIPPIN Price and EPS Surprise | ARDMORE SHIPPIN Quote

Matson, Inc. (MATX - Free Report) operates as an ocean transportation and logistics company. An earnings beat is unlikely for the company in Q2 despite its Zacks Rank #2 (Buy). This is because its Earnings ESP is 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate of 41 cents). The company will unveil its quarterly numbers on Aug 2.

MATSON INC Price and EPS Surprise

MATSON INC Price and EPS Surprise | MATSON INC Quote

Nordic American Offshore Ltd. owns and operates platform supply vessels in the North Sea. Even though the company, which is expected to report on Aug 2, has a Zacks Rank #2, its Earnings ESP of 0.00% makes an earnings beat unlikely.

NORDIC AM OFFSH Price and EPS Surprise

NORDIC AM OFFSH Price and EPS Surprise | NORDIC AM OFFSH Quote

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