Maritime shipping company Genco (NYSE: GNK) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Genco beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $44.35 million, down 43.9% year on year. It was a strong quarter for the company, with a decent beat of analysts’ adjusted operating income estimates.
Is Genco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Genco’s revenue to decline 35.9% year on year to $48.88 million, a reversal from the 25.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Genco has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Genco’s peers in the marine transportation segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Matson’s revenues decreased 2% year on year, beating analysts’ expectations by 8.1%, and Scorpio Tankers reported a revenue decline of 40.4%, topping estimates by 1.7%. Matson traded up 1.2% following the results while Scorpio Tankers’s stock price was unchanged.
Read our full analysis of Matson’s results here and Scorpio Tankers’s results here.
Investors in the marine transportation segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Genco is up 16.3% during the same time and is heading into earnings with an average analyst price target of $20.06 (compared to the current share price of $16.25).
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