Maritime shipping company Genco (NYSE:GNK) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Genco missed analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $70.75 million, up 46.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates. It reported 42 owned vessels, up 7.7% year on year.
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 5.5% year on year to $67.41 million, improving from the 10.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at Genco’s peers in the transportation and logistics segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Kirby posted flat year-on-year revenue, meeting analysts’ expectations, and Scorpio Tankers reported a revenue decline of 42.5%, falling short of estimates by 3.6%. Kirby traded up 2.4% following the results while Scorpio Tankers was down 6.6%.
Read our full analysis of Kirby’s results here and Scorpio Tankers’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the transportation and logistics stocks have shown solid performance, the group has generally underperformed, with share prices down 4.5% on average over the last month. Genco is up 2.4% during the same time and is heading into earnings with an average analyst price target of $19.60 (compared to the current share price of $14.63).
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