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Golden Ocean (GOGL) to Report Q1 Earnings: What's in Store?

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·3-min read
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Golden Ocean Group GOGL is scheduled to report first-quarter 2022 results on May 19.

The Zacks Consensus Estimate for first-quarter earnings has been steady at 35 cents over the past 60 days. The consensus mark for revenues is currently pegged at $192.7 million.

Against this backdrop, let’s discuss the factors that might have impacted Golden Ocean’s performance in the March quarter.

We expect GOGL’s first-quarter performance to have been driven by the gradual uptick in economic activities. This, in turn, might have perked up its revenues from the year-ago quarter’s reported figure despite the Omicron-induced woes in the early part of the quarter.

The optimism surrounding the Drybulk market is likely to have boosted Golden Ocean’s top line in the to-be-reported quarter. Revenues are likely to have increased owing to favorable Drybulk freight rates. Efforts to expand its fleet size also point to the increasing demand-scenario.

However, we expect GOGL’s first-quarter bottom-line performance to have been hurt by an escalated time charter and voyage expenses. Moreover, steep oil price is flaring up fuel costs. This, in turn, is likely to have pushed up the operating costs in the to-be-reported quarter.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Golden Ocean 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. However, that is not the case here as elaborated below. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Golden Ocean has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 35 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Golden Ocean currently carries a Zacks Rank #3.

Highlights of Q4 Earnings

Golden Ocean's fourth-quarter 2021 earnings (excluding a couple of cents from non-recurring items) of 99 cents per share beat the Zacks Consensus Estimate of 75 cents. Total revenues of $312.9 million surpassed the Zacks Consensus Estimate of $284.3 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Ryanair Holdings (RYAAY) and Star Bulk Carriers SBLK as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Ryanair has an Earnings ESP of +2.70% and a Zacks Rank #3. RYAAY will announce the fourth-quarter fiscal 2022 results on May 16.

Improving air-travel demand is serving RYAAY well. However, high fuel costs are denting Ryanair’s bottom line.

Star Bulk Carriers has an Earnings ESP of +1.77% and a Zacks Rank #2. SBLK will announce first-quarter 2022 results on May 24.

Improvement in travel demand is likely to have boosted Star Bulk’s voyage revenues in the March quarter. Continued fleet expansion initiatives are also expected to have contributed to SBLK’s performance in the to-be-reported quarter. However, high fuel costs are likely to have stressed SBLK’s bottom line.

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


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Golden Ocean Group Limited (GOGL) : Free Stock Analysis Report
 
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
 
Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report
 
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