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Costamare (CMRE) to Report Q3 Earnings: What's in Store?

Costamare CMRE is scheduled to report third-quarter 2021 results on Oct 27, before market open.

The Zacks Consensus Estimate for third-quarter earnings has been revised 20.6% upward to 76 cents per share over the past 60 days. However, the company has an unimpressive earnings history. Its bottom line outperformed estimates in only one of the preceding four quarters (reporting in-line earnings in two quarters and missing the mark in the remaining one).

Costamare Inc. Price and EPS Surprise

Costamare Inc. price-eps-surprise | Costamare Inc. Quote

Against this backdrop, let’s take a look at the factors that are likely to have impacted Costamare’s September-quarter performance.

We expect Costamare’s third-quarter 2021 performance to have been hurt by the Delta variant-led surge in COVID-19 cases (particularly in July) across the United States. Hurricane Ida-induced disruptions are also likely to have dented the third-quarter performance.

However, with COVID-19 cases declining of late and economic activities picking up the pace, voyage revenues received a boost, which in turn, are likely to have increased sequentially. The uptick in economic activities and the resultant expansion in trade volumes are a huge boon for shipping stocks like Costamare as the same is responsible for ferrying a high proportion of goods involved in world trade.

However, with oil price moving north (up 2.1%, sequentially, in the third quarter), fuel expenses increased, which in turn, might have escalated the company's operating expenses in the to-be-reported quarter, thereby affecting its bottom line.

What Does the Zacks Model Say?

The proven Zacks model does not predict an earnings beat for Costamare 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. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP:  Costamare 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: Costamare sports a Zacks Rank #1, currently.

Highlights of Q2 Earnings

Costamare’s second-quarter earnings per share (excluding 20 cents from non-recurring items) of 47 cents were in line with the Zacks Consensus Estimate. The bottom line surged 80.8% year over year. Revenues of $166.8 million not only increased 49.1% year over year but also outpaced the Zacks Consensus Estimate of $166 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider United Parcel Service UPS, Ryder System R and C.H. Robinson Worldwide CHRW as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

UPS has an Earnings ESP of +1.27% and is Zacks #3 Ranked, presently. The company will release third-quarter results on Oct 26.

Ryder has an Earnings ESP of +4.73% and a Zacks Rank #1 at present. The company will report third-quarter results on Oct 27.

C.H. Robinson has an Earnings ESP of +1.06% and is currently a #3 Ranked player. The company will release third-quarter 2021 results on Oct 26.


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