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Star Bulk (SBLK) Gears Up for Q1 Earnings: What's in Store?

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Star Bulk Carriers (SBLK - Free Report) is scheduled to report first-quarter 2023 results on May 16, after market close.

The Zacks Consensus Estimate for earnings has been revised downward by 14.7% in the past 60 days. SBLK has an impressive earnings surprise history, having surpassed the consensus estimate in three of the last four quarters, missing once, the average beat being 9.9%.

Against this backdrop, let’s check out the factors expected to have impacted Star Bulk’s March-quarter performance.

We expect vessel operating expenses to have been high in the to-be-reported quarter. This is likely to have dented SBLK’s bottom-line performance. Costs are most likely to have shot up due to elevated fuel expenses.

Moreover, supply-chain disruptions are likely to dampen this shipping company’s results.

Star Bulk Carriers Corp. Price and EPS Surprise

Star Bulk Carriers Corp. Price and EPS Surprise

Star Bulk Carriers Corp. price-eps-surprise | Star Bulk Carriers Corp. Quote

On a brighter note, buoyant travel demand is likely to have boosted voyage revenues in the quarter under review. Continued fleet expansion (including cargo fleet) initiatives are also likely to have driven the company’s performance.

Earnings Whispers

Our proven model does not predict an earnings beat for Star Bulk 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 not the case here.

Earnings ESP: Star Bulk has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 29 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Star Bulk carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Q1 Performance of Some Other Transportation Companies

J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.

JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.

Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.

DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.

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