Genco (GNK) Q3 Earnings Report Preview: What To Look For

Maritime shipping company Genco (NYSE:GNK) will be reporting earnings this Wednesday afternoon. Here’s what to look for.

Genco met analysts’ revenue expectations last quarter, reporting revenues of $48.91 million, down 35.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ EBITDA estimates. It reported 42 owned vessels, down 2.3% year on year.

Is Genco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Genco’s revenue to decline 19.5% year on year to $56.94 million, a reversal from the 46.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 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 twice over the last two years.

Looking at Genco’s peers in the transportation and logistics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Scorpio Tankers’s revenues decreased 9.8% year on year, meeting analysts’ expectations, and Kirby reported revenues up 4.8%, topping estimates by 2.3%. Scorpio Tankers’s stock price was unchanged after the resultswhile Kirby was up 17.7%.

Read our full analysis of Scorpio Tankers’s results here and Kirby’s results here.

Investors in the transportation and logistics segment have had steady hands going into earnings, with share prices flat over the last month. Genco is down 1.4% during the same time and is heading into earnings with an average analyst price target of $20.81 (compared to the current share price of $16.75).

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