Star Bulk to Post Q2 Earnings: What's in the Offing?

Star Bulk Carriers SBLK is scheduled to report second-quarter 2024 results on Aug 7, after market close.

The Zacks Consensus Estimate for the to-be-reported quarter's earnings and revenues is pegged at 79 cents per share and $329.4 million, respectively.

The earnings estimate for the to-be-reported quarter has declined 1.3% in the past 60 days. The bottom-line projection indicates year-over-year growth of 68.1%. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 38%.

SBLK has a decent earnings surprise history, having surpassed the consensus estimate in two of the last four quarters, missing once and reporting in-line earnings in the remaining quarter. The average beat is 30.5%.

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. Costs are most likely to have shot up due to elevated fuel expenses. Supply-chain disruptions are anticipated to have dampened this shipping company's results.

However, continued fleet expansion (including cargo fleet) initiatives are likely to have driven the company's performance. The positive sentiment surrounding the dry bulk market is also expected to have aided the company's performance in the to-be-reported quarter. The Capesize market is very strong currently. This reflects strong demand for dry bulk commodities from not only China but also the rest of the world and bodes well for dry bulk shipping companies like SBLK.

Earnings Whisper

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 an earnings beat, which is not the case here.

Earnings ESP: Star Bulk has an Earnings ESP of 0.00%.

Zacks Rank: Star Bulk currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider, as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.

Copa Holdings CPA has an Earnings ESP of +1.55% and a Zacks Rank #3 at present. The company is scheduled to report second-quarter 2024 earnings on Aug 7.

CPA surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 20.19%.

C.H. Robinson CHRW currently has an Earnings ESP of +5.29% and a Zacks Rank #2. The company is scheduled to report second-quarter 2024 earnings on Jul 31.

CHRW surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 2.07%.

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