Navios Maritime to Report Q2 Earnings: What's in Store?

Navios Maritime NMM is scheduled to release second-quarter 2024 earnings results on Aug 20, before market opens.

The shipping company's earnings surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 25.4%.

Against this backdrop, let's delve into the factors that might have impacted Navios Maritime's June-quarter performance.

We expect vessel operating expenses to have been high in the to-be-reported quarter. Time charter and voyage expenses are also expected to have been high. High costs are likely to have dented NMM's bottom-line performance. Supply-chain disruptions are anticipated to have dampened this shipping company's results.

However, continued fleet expansion initiatives are likely to have driven the company's performance. Time charter and voyage revenues are likely to have been impressive in the June quarter, primarily driven by revenues from freight voyages.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Navios Maritime 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: NMM has an Earnings ESP of 0.00% at present.

Zacks Rank: NMM carries a Zacks Rank of 3, currently.

Performances of Other Transportation Companies

Delta Air Lines DAL reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.

Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.

J.B. Hunt Transport Services' JBHT earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.

JBHT's total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenues, fell 6% year over year. The downfall was owing to a 5% decrease in gross revenue per load in Intermodal and a decline in load volume of 25% in Integrated Capacity Solutions, 9% in Truckload and 9% in Dedicated Contract Services.

United Airlines UAL reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.

Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year attributed to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.

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