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Star Bulk (SBLK) to Report Q3 Earnings:What's in Store?

Zacks Equity Research
·4-min read

Star Bulk Carriers SBLK is scheduled to release third-quarter 2022 results on Nov 16, after market close.

SBLK has an impressive surprise history, with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 13.8%. The Zacks Consensus Estimate for Star Bulk’s third-quarter earnings has been revised 4.8% downward in the past 60 days.

Star Bulk Carriers Corp. Price and EPS Surprise

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

Against this backdrop, let’s look at the factors that are expected to have impacted Star Bulk’s September-quarter performance.

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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 in the September quarter. Costs are most likely to have shot up due to increased crew expenses and elevated fuel expenses. Moreover, supply-chain disruptions are likely to have dampened this shipping company’s results.

On a brighter note, buoyant travel demand is likely to have boosted voyage revenues in the September quarter. Continued fleet expansion initiatives are also likely to have driven Star Bulk’s performance in the to-be-reported quarter. Bullish sentiments surrounding the dry bulk market are also likely to have boosted results.

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 a positive surprise, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Star Bulk has an Earnings ESP of +3.89% as the Most Accurate Estimate is 5 cents above the Zacks Consensus Estimate of $1.42. 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.

Q3 Performances of Some Transportation Companies

Delta Air Lines’ DAL third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dim in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $13,975 million, lagging the Zacks Consensus Estimate of $14,157.2 million. Driven by high air-travel demand, total revenues increased more than 52% on a year-over-year basis.

United Airlines’ UAL third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. Upbeat air-travel demand aided results.

In the year-ago quarter, UAL incurred a loss of $1.02 per share as air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable period at UAL since the onset of the pandemic.

Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an uptick in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.

J.B. Hunt Transport Services JBHT reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the respective Zacks Consensus Estimate. JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.

JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across the Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.

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



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Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report
 
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
 
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
 
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
 
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