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Shipping Stock Q3 Earnings to Watch on Nov 2: ASC, GNK, KNOP
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The Q3 earnings season is at its peak and the current week will be an extremely busy one with a deluge of earnings reports scheduled for the following days. According to our latest Earnings Preview report, more than 1000 companies (including 130 S&P 500 members) will be reporting Q3 numbers this week.
As of Oct 28, earnings reports from 291 S&P 500 companies (representing 68.5% in terms of market capitalization for the coveted index) were already on board. The picture that has emerged from these reports is an extremely bullish one, with 2.2% growth in the bottom line and 1.3% increase in revenues, on a year-over-year basis.
The report predicts that the S&P 500 companies will end Q3 with bottom-line expansion of 2% and 1.3% growth in the top line. In the event of the prediction coming true, this would be the first quarter to witness earnings growth after five consecutive quarters of earnings decline. With a plethora of reports scheduled for the current week, we will likely get a clearer picture of the overall earnings trends soon.
Despite impressive performances overall, the widely diversified transportation sector has been lagging behind in Q3 as multiple headwinds continue to plague the space. Earnings for the sector is projected to decline 13.5% in Q3, making it one of four Zacks sectors (out of a total of 16 sectors) that are expected to underperform in the current reporting cycle.
Though the majority of transportation stocks have already reported their quarterly numbers, a few still are yet to unveil their financial reports. Most of these companies are from the shipping space.
Shipping companies too have been facing headwinds like low freight rates and weak financial position to name a few. Key players in the segment like Seaspan Corporation and Scorpio Bulkers have come up with disappointing Q3 results. Hence, reports from other shipping players like Ardmore Shipping Corporation (ASC - Free Report) , Genco Shipping & Trading Limited (GNK - Free Report) and KNOT Offshore Partners LP (KNOP - Free Report) will be keenly awaited on Nov 2.
Will these stocks be able to reverse the disappointing trend? Let’s take a look at how these companies might fare when they report their Q3 results on Nov 2.
Hamilton, Bermuda-based Ardmore Shipping Corporation engages in the ownership and operation of product and chemical tankers. According to our model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) – to increase its odds of an earnings surprise. The company has a Zacks Rank #3 but an Earnings ESP of -25.00%. In spite of the company’s favorable Zacks Rank, its negative ESP makes an earnings beat unlikely in Q3.
New York-based Genco Shipping & Trading Ltd. engages in ocean transportation of drybulk cargoes worldwide. Even though the company sports a Zacks Rank #1, its Earnings ESP of 0.00% (the Most accurate Estimate is in line with the Zacks Consensus Estimate) complicates our surprise prediction.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
KNOT Offshore Partners LP owns a portfolio of shuttle tankers that carry oil from offshore platforms to processing facilities. These tankers operate under long-term charters in the North Sea and Brazil. The Scottish partnership has a Zacks Rank #3. However, its Earnings ESP of 0.00% (the Most Accurate estimate is in line with the Zacks Consensus Estimate of 45 cents) complicates our surprise prediction.
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Shipping Stock Q3 Earnings to Watch on Nov 2: ASC, GNK, KNOP
The Q3 earnings season is at its peak and the current week will be an extremely busy one with a deluge of earnings reports scheduled for the following days. According to our latest Earnings Preview report, more than 1000 companies (including 130 S&P 500 members) will be reporting Q3 numbers this week.
As of Oct 28, earnings reports from 291 S&P 500 companies (representing 68.5% in terms of market capitalization for the coveted index) were already on board. The picture that has emerged from these reports is an extremely bullish one, with 2.2% growth in the bottom line and 1.3% increase in revenues, on a year-over-year basis.
The report predicts that the S&P 500 companies will end Q3 with bottom-line expansion of 2% and 1.3% growth in the top line. In the event of the prediction coming true, this would be the first quarter to witness earnings growth after five consecutive quarters of earnings decline. With a plethora of reports scheduled for the current week, we will likely get a clearer picture of the overall earnings trends soon.
Despite impressive performances overall, the widely diversified transportation sector has been lagging behind in Q3 as multiple headwinds continue to plague the space. Earnings for the sector is projected to decline 13.5% in Q3, making it one of four Zacks sectors (out of a total of 16 sectors) that are expected to underperform in the current reporting cycle.
Though the majority of transportation stocks have already reported their quarterly numbers, a few still are yet to unveil their financial reports. Most of these companies are from the shipping space.
Shipping companies too have been facing headwinds like low freight rates and weak financial position to name a few. Key players in the segment like Seaspan Corporation and Scorpio Bulkers have come up with disappointing Q3 results. Hence, reports from other shipping players like Ardmore Shipping Corporation (ASC - Free Report) , Genco Shipping & Trading Limited (GNK - Free Report) and KNOT Offshore Partners LP (KNOP - Free Report) will be keenly awaited on Nov 2.
Will these stocks be able to reverse the disappointing trend? Let’s take a look at how these companies might fare when they report their Q3 results on Nov 2.
Hamilton, Bermuda-based Ardmore Shipping Corporation engages in the ownership and operation of product and chemical tankers. According to our model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) – to increase its odds of an earnings surprise. The company has a Zacks Rank #3 but an Earnings ESP of -25.00%. In spite of the company’s favorable Zacks Rank, its negative ESP makes an earnings beat unlikely in Q3.
ARDMORE SHIPPIN Price and EPS Surprise
ARDMORE SHIPPIN Price and EPS Surprise | ARDMORE SHIPPIN Quote
New York-based Genco Shipping & Trading Ltd. engages in ocean transportation of drybulk cargoes worldwide. Even though the company sports a Zacks Rank #1, its Earnings ESP of 0.00% (the Most accurate Estimate is in line with the Zacks Consensus Estimate) complicates our surprise prediction.
GENCO SHPG&TRDG Price and EPS Surprise
GENCO SHPG&TRDG Price and EPS Surprise | GENCO SHPG&TRDG Quote
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
KNOT Offshore Partners LP owns a portfolio of shuttle tankers that carry oil from offshore platforms to processing facilities. These tankers operate under long-term charters in the North Sea and Brazil. The Scottish partnership has a Zacks Rank #3. However, its Earnings ESP of 0.00% (the Most Accurate estimate is in line with the Zacks Consensus Estimate of 45 cents) complicates our surprise prediction.
KNOT OFFSHOR LP Price and EPS Surprise
KNOT OFFSHOR LP Price and EPS Surprise | KNOT OFFSHOR LP Quote
You can see the complete list of today’s Zacks #1 Rank stocks here.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>