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Transport Stocks' Q2 Earnings on Aug 1: DAC, RAIL & Others
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The Q2 earnings season has taken center stage with 208 S&P 500 members having reported their numbers as per our latest earnings trends report (data as of Jul 27).
The report further states that 86.7% of the transportation sector (one of the 16 Zacks sectors) participants in the S&P 500 space, representing 74.3% in terms of market capitalization, have already reported their quarterly numbers. Although the sector is witnessing negative year-over-year earnings growth (14.8%), a healthy proportion of companies (69.2%) have outshined the Zacks Consensus Estimate with respect to the bottom line. The impressive beat ratio has come from the bottom-line out performances by carriers like Delta Air Lines (DAL - Free Report) and JetBlue Airways Corporation (JBLU - Free Report) .
However, the sector is grappling with a range of headwinds, which is the reason behind the negative year-over-year earnings growth rate (12.6%) projection for this division in Q2. The top line is estimated to shrink 1.3% in the quarter.
In fact, the transportation sector is one of the 10 Zacks sectors projected to end Q2 with earnings growth in the red. As expected, the energy sector is anticipated to be the worst performer with the bottom line likely to contract 77.3%. The entire S&P 500 index is expected to end Q2 with earnings growth rate of -3.5%, which marks an improvement from the preceding quarter’s comparable figure of -6.5%.
Given this gloomy backdrop, it would be interesting to see what awaits the likes of Danaos Corporation (DAC - Free Report) , FreightCar America (RAIL - Free Report) , Genesee & Wyoming and Green Plains Partners LP when they report their second-quarter 2016 numbers on Aug 1.
Danaos Corporation is a leading international owner of containerships, and the company charters vessels to many of the world’s largest liner companies. According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESPand a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. Even though the company has a Zacks Rank #1 (Strong Buy), its Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate of 43 cents) dims chances of an earnings beat.
FreightCar America manufactures railroad freight cars and parts and leases freight cars through its JAIX Leasing company subsidiary. Even though the company has a Zacks Rank #3, its Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate of 40 cents) makes an earnings beat unlikely.
Genesee & Wyoming owns and operates short line and regional freight railroads. The company has three segments, which are North American Railroad Operations, Australian Railroad Operations and Industrial Switching. Even though the company has a Zacks Rank #3, its Earnings ESP of -2.56% (Most Accurate estimate lags the Zacks Consensus Estimate of 78 cents by 2 cents) complicates our surprise prediction.
Green Plains Partners LP owns, operates, develops and acquires ethanol and fuel storage tanks, terminals, transportation and other related assets and operations. Even though the company has a Zacks Rank #3, its Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate of 40 cents) makes an earnings beat unlikely.
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Transport Stocks' Q2 Earnings on Aug 1: DAC, RAIL & Others
The Q2 earnings season has taken center stage with 208 S&P 500 members having reported their numbers as per our latest earnings trends report (data as of Jul 27).
The report further states that 86.7% of the transportation sector (one of the 16 Zacks sectors) participants in the S&P 500 space, representing 74.3% in terms of market capitalization, have already reported their quarterly numbers. Although the sector is witnessing negative year-over-year earnings growth (14.8%), a healthy proportion of companies (69.2%) have outshined the Zacks Consensus Estimate with respect to the bottom line. The impressive beat ratio has come from the bottom-line out performances by carriers like Delta Air Lines (DAL - Free Report) and JetBlue Airways Corporation (JBLU - Free Report) .
However, the sector is grappling with a range of headwinds, which is the reason behind the negative year-over-year earnings growth rate (12.6%) projection for this division in Q2. The top line is estimated to shrink 1.3% in the quarter.
In fact, the transportation sector is one of the 10 Zacks sectors projected to end Q2 with earnings growth in the red. As expected, the energy sector is anticipated to be the worst performer with the bottom line likely to contract 77.3%. The entire S&P 500 index is expected to end Q2 with earnings growth rate of -3.5%, which marks an improvement from the preceding quarter’s comparable figure of -6.5%.
Given this gloomy backdrop, it would be interesting to see what awaits the likes of Danaos Corporation (DAC - Free Report) , FreightCar America (RAIL - Free Report) , Genesee & Wyoming and Green Plains Partners LP when they report their second-quarter 2016 numbers on Aug 1.
Danaos Corporation is a leading international owner of containerships, and the company charters vessels to many of the world’s largest liner companies. According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESPand a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. Even though the company has a Zacks Rank #1 (Strong Buy), its Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate of 43 cents) dims chances of an earnings beat.
DANAOS CORP Price and EPS Surprise
DANAOS CORP Price and EPS Surprise | DANAOS CORP Quote
FreightCar America manufactures railroad freight cars and parts and leases freight cars through its JAIX Leasing company subsidiary. Even though the company has a Zacks Rank #3, its Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate of 40 cents) makes an earnings beat unlikely.
FREIGHTCAR AMER Price and EPS Surprise
FREIGHTCAR AMER Price and EPS Surprise | FREIGHTCAR AMER Quote
Genesee & Wyoming owns and operates short line and regional freight railroads. The company has three segments, which are North American Railroad Operations, Australian Railroad Operations and Industrial Switching. Even though the company has a Zacks Rank #3, its Earnings ESP of -2.56% (Most Accurate estimate lags the Zacks Consensus Estimate of 78 cents by 2 cents) complicates our surprise prediction.
GENESEE & WYO Price and EPS Surprise
GENESEE & WYO Price and EPS Surprise | GENESEE & WYO Quote
Green Plains Partners LP owns, operates, develops and acquires ethanol and fuel storage tanks, terminals, transportation and other related assets and operations. Even though the company has a Zacks Rank #3, its Earnings ESP of 0.00% (Most Accurate estimate is in line with the Zacks Consensus Estimate of 40 cents) makes an earnings beat unlikely.
GREEN PLAIN PTR Price and EPS Surprise
GREEN PLAIN PTR Price and EPS Surprise | GREEN PLAIN PTR Quote
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