Eagle Bulk Shipping (EGLE) Soars 7.4%: Is Further Upside Left in the Stock?
Eagle Bulk Shipping (EGLE) shares ended the last trading session 7.4% higher at $33.52. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 54% gain over the past four weeks.
The upside was owing to the better-than-expected fourth-quarter 2020 earnings report disclosed by the shipping company. The company’s fourth-quarter 2020 earnings of one cent compared favorably not only to the Zacks Consensus Estimate of a loss of 27 cents but also to the year-ago loss of 98 cents. The bottom-line was aided by a 9.7% reduction in net operating expenses. Moreover, the company’s revenues of 55.6 million surpassed the Zacks Consensus Estimate of $54.4 million.
Price and Consensus
This shipping company is expected to post quarterly loss of $0.89 per share in its upcoming report, which represents a year-over-year change of -154.3%. Revenues are expected to be $43.58 million, down 8.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Eagle Bulk Shipping, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EGLE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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