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Star Bulk (SBLK) Gears Up for Q2 Earnings: What's in Store?

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Star Bulk Carriers (SBLK - Free Report) is scheduled to report second-quarter 2023 results on Aug 3, after market close.

The Zacks Consensus Estimate for earnings has been revised downward by 17.5% 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 11.6%.

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

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

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. The Zacks Consensus Estimate for second-quarter 2023 earnings has decreased 74% year over year.

Supply-chain disruptions are likely to dampen this shipping company’s results.
Weaker market conditions might have hurt voyage revenues. The softness is also likely to have dented Time charter equivalent revenues in the quarter under review. The Zacks Consensus Estimate for quarterly revenues has plunged 45.5% year over year.

However, continued fleet expansion (including cargo fleet) initiatives are likely to have driven the company’s performance.

Earnings Whisper

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 -45.63%. 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 #4 (Sell), currently.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this time around.

Air Transport Services Group, Inc. (ATSG - Free Report) currently has an Earnings ESP of +1.37% and a Zacks Rank #3. It will release second-quarter 2023 results on Aug 3.

We are impressed by ATSG's efforts to reward shareholders through buybacks. In November 2022, ATSG’s board of directors approved a new share repurchase authorization of $150 million shares, offsetting its previously exhausted share buybacks.

Copa Holdings, S.A. (CPA - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2. CPA is slated to release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank stocks here.

Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average. The Zacks Consensus Estimate for second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.

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


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