What's In Store For Grindrod Shipping (GRIN) In Q2 Earnings?

Grindrod Shipping Holdings Ltd. GRIN is scheduled to release second-quarter 2022 earnings on Aug 17, after market close.

The Zacks Consensus Estimate for second-quarter earnings has remained stable at $1.43 over the past 60 days.   

Against this backdrop, let's discuss the factors that might have impacted Grindrod Shipping's performance in the June quarter.

With the gradual resumption of economic activities, world trade has picked up the pace, which in turn, is likely to aid the second-quarter results of shipping stocks like Grindrod Shipping. This is because the shipping industry is responsible for transporting an enormous proportion of goods involved in world trade.

The bullish sentiment surrounding the Dry bulk market is likely to have boosted Grindrod Shipping's top line in the to-be-reported quarter. Revenues are likely to have increased owing to the favorable sentiments surrounding the dry bulk market.

However, we expect GRIN's second-quarter bottom line to have been hurt by escalated voyage expenses. The continuous rise in oil price is resulting in high fuel costs. This, in turn, is likely to have pushed up the operating costs in the to-be-reported quarter. Supply-chain woes, too, might have dented the performance of GRIN in the to-be-reported quarter.

What Does the Zacks Model Say?

Our proven model does not predict an earnings beat for Grindrod Shipping 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 as elaborated below.

Earnings ESP: Grindrod Shipping has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of $1.43. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: Grindrod Shipping currently holds a Zacks Rank of 3.

Highlights of Q1 Earnings

Grindrod Shipping's first-quarter 2022 earnings of $1.56 per share (excluding 4 cents from non-recurring items) surpassed the Zacks Consensus Estimate of $1.36. Moreover, total revenues of $86.6 million edged past the Zacks Consensus Estimate of $86.4 million.

Performances of Some Transportation Companies in Q2

J.B. Hunt Transport Services, Inc. JBHT reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. JBHT's quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.

JBHT's total operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT's total operating revenues, excluding fuel surcharges, rose 21.2% year over year.

CSX Corporation CSX reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.

CSX's quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.

CSX's total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge and contribution from the acquisition of Quality Carriers. CSX's overall revenues per unit increased 27%.

C.H. Robinson Worldwide's CHRW second-quarter 2022 earnings of $2.67 per share surpassed the Zacks Consensus Estimate of $1.93. Moreover, the bottom line surged 85.4% year over year. Strong performance by CHRW's truckload and less-than-truckload businesses aided results.

Total revenues of $6,798.5 million outperformed the Zacks Consensus Estimate of $6,717.7 million. The top line jumped 22.9% year over year owing to favorable pricing across most of CHRW's services, and higher truckload and ocean volume.

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