What's in Store for Pangaea Logistics (PANL) in Q3 Earnings?

Pangaea Logistics PANL is slated to release third-quarter 2021 results on Nov 9, after market close.

The transportation company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the consensus mark once), the average beat being 18.5%.

Pangaea Logistics Solutions Ltd. Price and EPS Surprise

Pangaea Logistics Solutions Ltd. Price and EPS Surprise

Pangaea Logistics Solutions Ltd. price-eps-surprise | Pangaea Logistics Solutions Ltd. Quote

The Zacks Consensus Estimate for third-quarter earnings has remained stable at 35 cents per share over the past 60 days.

Against this backdrop, let’s examine the factors that are likely to have impacted the company’s September-quarter performance.

We expect Pangaea Logistics’ third-quarter bottom-line result to take a hit from escalated charter hire and voyage expenses. With oil price rising, fuel costs are shooting up. This, in turn, might have flared up the operating costs in the to-be-reported quarter. Moreover, the Delta-variant-induced operational disruptions are likely to have negatively impacted the shipping company’s performance in the September quarter.

However, the bullish sentiment surrounding the drybulk market is a huge blessing for Pangaea Logistics and is likely to have boosted its top line in the soon-to-be-reported quarter. The northward movement of the Baltic Dry Index — a proxy for global dry freight rates across 23 routes — buoys optimism for the dry bulk market. Revenues are likely to have increased in the to-be-reported quarter owing to the uptick in the average time charter equivalent rates achieved by the company’s vessels.

Earnings Whispers

Our proven model does not predict an earnings beat for Pangaea Logistics 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: Pangaea Logistics 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: Pangaea Logistics carries a Zacks Rank #3, currently.

Highlights of Q2 Earnings

Pangaea Logistics’ second-quarter earnings per share (excluding 14 cents from non-recurring items) of 29 cents beat the Zacks Consensus Estimate of 22 cents. The bottom line surged in excess of 100% year over year. However, revenues of $145.5 million fell short of the Zacks Consensus Estimate of $165.2 million. The top line expanded more than 100% year over year.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Diana Shipping DSX, Copa Holdings CPA and Star Bulk Carriers SBLK as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Diana Shippinghas an Earnings ESP of +5.88% and a Zacks Rank #2, presently. The company will release third-quarter 2021 results on Nov 17.

Copa Holdings has an Earnings ESP of +25.74% and a Zacks Rank of 3 at present. The company is scheduled to report third-quarter 2021 earnings numbers on Nov 17.

Star Bulk Carriers has an Earnings ESP of +1.81% and is currently a #2 Ranked player. The company will release third-quarter 2021 results on Nov 16.

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Diana Shipping inc. (DSX) : Free Stock Analysis Report

Copa Holdings, S.A. (CPA) : Free Stock Analysis Report

Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report

Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report

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