Navios Maritime Partners (NMM) Q4 Earnings: What's In Store?
Zacks Investment Research | Jan 28, 2019 10:26PM ET
Navios Maritime Partners L.P. (NYSE:NMM) is scheduled to release fourth-quarter 2018 earnings numbers on Jan 31, before market open. We note that Master limited partnerships (or MLPs) differ from regular stocks because interests in them are referred to as units. Notably, unitholders (not shareholders) are partners in the business.
In the last reported quarter, the partnership delivered a positive earnings surprise of 66.7%. Navios Maritime Partners also has an encouraging history with respect to the bottom line. The company has outshined the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 75%.
Let’s see how things are shaping up for this earnings season.
We expect the partnership’s fourth-quarter results to be aided by higher time charter and voyage revenues. The metric is also anticipated to increase on the back of revenue growth, following the acquisition of multiple vessels in 2017 and 2018. Increase in the time charter equivalent rate or TCE is too expected to boost time charter and voyage revenues in the to-be-reported quarter.
Additionally, the partnership is likely to benefit from its healthy liquidity position. Free cash flow is likely to improve in the fourth quarter of 2018. As a result of the upbeat cash position the partnership might acquire more vessels going forward. An update on the issue is not ruled out on the fourth-quarter conference call. Also, the partnership is expected to provide an update about its fleet on the call.
However, time charter and voyage expenses are likely to increase in the to-be-reported quarter, thereby limiting bottom-line growth.
Earnings Whispers
Our proven model does not conclusively show that Navios Maritime Partners is likely to beat estimates this earnings season. This is because a stock needs to have both — a positive Zacks Investment Research
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