Costamare (CMRE) to Post Q2 Earnings: What's in the Offing?

Costamare CMRE is scheduled to report second-quarter 2021 results on Jul 28, before market-open.

The Zacks Consensus Estimate for second-quarter earnings has been revised 4.4% upward to 47 cents per share over the past 60 days. The company has a mixed record with respect to earnings history. Its bottom line outperformed estimates in two of the preceding four quarters, missed the mark on one of the remaining occasions and matched the same in another period.

Costamare Inc. Price and EPS Surprise

Costamare Inc. Price and EPS Surprise

Costamare Inc. price-eps-surprise | Costamare Inc. Quote

Against this backdrop, let’s take a look at the factors that are likely to have impacted Costamare’s June-quarter performance.

With the gradual resumption of economic activities, the world trade gathered pace and this should aid the second-quarter results of shipping stocks like Costamare. This is because the shipping industry is responsible for transporting a high proportion of goods involved in world trade.

Bullishness surrounding the containership market is a huge positive for Costamare and is likely to have boosted its top line in the soon-to-be-reported quarter. The containership market is being aided by increased manufacturing activities in Asia besides other factors. The already high container rates were further hiked by the Suez Canal crisis earlier this year. The steep rates are likely to have boosted the company’s performance in the June quarter as container capacity tightened.

On the flip side, escalated voyage operating expenses mainly due to increased fuel costs are likely to have hurt the bottom line in the June quarter.

Earnings Whispers

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

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

Zacks Rank: Costamare sports a Zacks Rank of 1, currently.

Highlights of Q1 Earnings

Costamare’s first-quarter earnings (excluding 8 cents from non-recurring items) of 31 cents per share surpassed the Zacks Consensus Estimate by a penny. Total revenues of $126.7 million inched up 3.6% year over year and also surpassed the Zacks Consensus Estimate of $122.3 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Hawaiian Holdings, Inc. HA, Canadian Pacific Railway Limited CP and Allegiant Travel Company ALGT, which possess the right combination of elements to beat on earnings this reporting cycle.

Hawaiian Holdings has an Earnings ESP of +2.93% and is Zacks #2 Ranked, presently. The company will release second-quarter 2021 results on Jul 27.

Canadian Pacific has an Earnings ESP of +1.40% and a Zacks Rank #3 at present. The company will release second-quarter 2021 results on Jul 28.

Allegiant has an Earnings ESP of +7.01% and is currently a #3 Ranked player. The company will release second-quarter 2021 results on Jul 28.

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Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report

Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report

Allegiant Travel Company (ALGT) : Free Stock Analysis Report

Costamare Inc. (CMRE) : Free Stock Analysis Report

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