Global Ship Lease (GSL) to Post Q2 Earnings: What's in Store?

Global Ship Lease (NYSE:GSL) GSL is scheduled to report second-quarter 2021 earnings on Aug 5, 2021, before market open.

The company has a stellar surprise record with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 20.2%.

The Zacks Consensus Estimate for second-quarter earnings has been stable at 56 cents in the past 60 days.

Against this backdrop, let’s take a look at the factors that might have shaped the company’s June-quarter performance.

With the gradual resumption of economic activities, the world trade gained momentum and this uptick is expect to aid the second-quarter results of shipping stocks like Global Ship Lease. The upside also highlights the shipping industry’s sole responsibility to transport a high proportion of goods involved in world trade.

Bullish sentiment surrounding the containership market is a huge blessing for Global Ship Lease and is likely to have boosted its top line in the soon-to-be-reported quarter. The containership market is being aided by the ramped-up manufacturing activities in Asia besides other factors. The already high container rates were further hiked by the Suez Canal crisis earlier this year. The steep rates are likely to have boosted the company’s performance in the June quarter as container capacity tightened.

On the flip side, escalated time charter and voyage expenses, mainly due to increased fuel costs, are likely to have hurt the bottom line in the June quarter. Increase in ownership days is likely to have flared up vessel operating expenses.

What Does the Zacks Model Say?

The proven Zacks model does not predict an earnings beat for Global Ship Lease this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Global Ship Lease has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Global Ship Lease sports a Zacks Rank of 1, currently.

Highlights of Q1 Earnings

Global Ship Lease’s earnings of 55 cents per share surpassed the Zacks Consensus Estimate of 49 cents. Operating revenues of $73 million too surpassed the consensus mark of $71 million.

Sectorial Snapshots

Let’s look into some of the other recently released earnings reports from companies within the Zacks Transportation sector.

Knight-Swift Transportation Holdings KNX, presently carrying a Zacks Rank #2, reported second-quarter 2021 earnings (excluding 6 cents from non-recurring items) of 98 cents per share, surpassing the Zacks Consensus Estimate of 87 cents. Total revenues of $1,315.7 million also outperformed the Zacks Consensus Estimate of $1,300.8 million.

United Parcel Service (NYSE:UPS) UPS, currently carrying a Zacks Rank #3, reported second-quarter 2021 earnings (excluding a penny from non-recurring items) of $3.06 per share, beating the Zacks Consensus Estimate of $2.75. Quarterly revenues of $23,424 million also outperformed the Zacks Consensus Estimate of $23,085.4 million.

SkyWest (NASDAQ:SKYW) SKYW, currently flaunting a Zacks Rank #1, reported second-quarter 2021 earnings of $1.22 per share, beating the Zacks Consensus Estimate of 28 cents. Quarterly earnings also came against the year-ago loss of 51 cents. Revenues in the June quarter summed $657 million, not only surpassing the Zacks Consensus Estimate of $581.5 million but also increasing 87.7% year over year.

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