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Peek into Shipping Stock Q3 Earnings on Nov 3: GLOG, TNK, TK
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The Q3 earnings season has been quite impressive so far with most sectors displaying improved financials. The above-average performances have ignited hopes of a better economy. However, downward estimate revisions remain concerns. According to our latest Earnings Outlookarticle, more than 74.1% of S&P 500 members or 332 index members have already come up with their Q3 earnings reports as of Nov 1. On a year-over-year basis, earnings are up 1.9%, while revenues have improved 1.3% for these companies.
Shipping Stocks’ Earnings Performance
Despite improvement in the overall earnings picture, we note that shipping stocks – part of the broader transportation sector – have been lagging behind on the bottom-line front in Q3. With 93.3% of the transportation companies having reported their quarterly numbers as of Nov 1, we observe a 13.7% year-over-year decline in earnings. Given that most results are out, there is little scope for a turnaround in this sector in Q3. However, the sector saw a 1.3% year-over-year increase in revenues, in line with the trend across the index. Although 71.4% of the companies beat earnings estimates and 92.9% surpassed revenue expectations in the quarter, outlook for the transportation sector is not very encouraging as earnings expected to be down by 13.5% from the prior-year quarter.
Hence, it remains to be seen how these three shipping stocks are likely to perform when they report their quarterly results on Nov 3.
GasLog Ltd. operates under two segments – vessel ownership and management of Liquefied Natural Gas (LNG). The company currently has a Zacks Rank #4 (Sell). Please note we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. Also, it has an Earnings ESP of -33.3% as the Most Accurate Estimate stands at 2 cents while the Zacks Consensus Estimate is pegged at 3 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Teekay Tankers Ltd. (TNK - Free Report) provides marine transportation of crude oil. The company carries a Zacks Rank #4 and an Earnings ESP of 0.00%. We note that both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 17 cents. This renders our surprise prediction inconclusive.
Teekay Corporation (TK - Free Report) provides transportation services for crude oil and petroleum products worldwide. The company carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. Thus, our proven model does not conclusively show that it is likely to beat estimates in Q3. You can see the complete list of today’s Zacks #1 Rank (Stong Buy) stocks here.
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Peek into Shipping Stock Q3 Earnings on Nov 3: GLOG, TNK, TK
The Q3 earnings season has been quite impressive so far with most sectors displaying improved financials. The above-average performances have ignited hopes of a better economy. However, downward estimate revisions remain concerns. According to our latest Earnings Outlookarticle, more than 74.1% of S&P 500 members or 332 index members have already come up with their Q3 earnings reports as of Nov 1. On a year-over-year basis, earnings are up 1.9%, while revenues have improved 1.3% for these companies.
Shipping Stocks’ Earnings Performance
Despite improvement in the overall earnings picture, we note that shipping stocks – part of the broader transportation sector – have been lagging behind on the bottom-line front in Q3. With 93.3% of the transportation companies having reported their quarterly numbers as of Nov 1, we observe a 13.7% year-over-year decline in earnings. Given that most results are out, there is little scope for a turnaround in this sector in Q3. However, the sector saw a 1.3% year-over-year increase in revenues, in line with the trend across the index. Although 71.4% of the companies beat earnings estimates and 92.9% surpassed revenue expectations in the quarter, outlook for the transportation sector is not very encouraging as earnings expected to be down by 13.5% from the prior-year quarter.
Hence, it remains to be seen how these three shipping stocks are likely to perform when they report their quarterly results on Nov 3.
GasLog Ltd. operates under two segments – vessel ownership and management of Liquefied Natural Gas (LNG). The company currently has a Zacks Rank #4 (Sell). Please note we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. Also, it has an Earnings ESP of -33.3% as the Most Accurate Estimate stands at 2 cents while the Zacks Consensus Estimate is pegged at 3 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
GASLOG LTD Price and EPS Surprise
GASLOG LTD Price and EPS Surprise | GASLOG LTD Quote
Teekay Tankers Ltd. (TNK - Free Report) provides marine transportation of crude oil. The company carries a Zacks Rank #4 and an Earnings ESP of 0.00%. We note that both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 17 cents. This renders our surprise prediction inconclusive.
TEEKAY TANKERS Price and EPS Surprise
TEEKAY TANKERS Price and EPS Surprise | TEEKAY TANKERS Quote
Teekay Corporation (TK - Free Report) provides transportation services for crude oil and petroleum products worldwide. The company carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. Thus, our proven model does not conclusively show that it is likely to beat estimates in Q3. You can see the complete list of today’s Zacks #1 Rank (Stong Buy) stocks here.
TEEKAY CORP Price and EPS Surprise
TEEKAY CORP Price and EPS Surprise | TEEKAY CORP Quote
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>