Global Ship Lease GSL is scheduled to release fourth-quarter 2024 results on March 5, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for GSL’s soon-to-be-reported quarter’s earnings has been revised downward by 2.1% in the past 60 days to $2.3 per share. The consensus mark has declined 7.6% from fourth-quarter 2023 actuals. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $172.8 million, which indicates a decline of 3.4% from the year-ago actuals.

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GSL has an impressive earnings surprise record. Its bottom line surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 5.9%.

Against this backdrop, let us check out the factors that are expected to have influenced GSL’s December-quarter performance.

GLS's top line in the to-be-reported quarter is expected to have been significantly bolstered by impressive demand for container ships. Increased operational efficiencies are likely to have aided the bottom-line performance in the December quarter. The heightened fleet utilization is expected to have positively impacted GSL’s performance.

On the contrary, geopolitical instability, supply-chain disruptions and environmental regulations pose a significant threat to GSL's performance in the December quarter by potentially increasing operating expenses. The slowdown in global economic growth has hurt shipping rates. An oversupply of vessels and subdued demand has hit tanker rates.

What Our Model Says About GSL

Our proven model does not conclusively predict that Global Ship Lease will beat earnings this time. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Earnings ESP: Global Ship Lease has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimates are both pegged at $2.30. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Global Ship Lease currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GSL Stock’s Double-Digit Decline in Q4

Mainly due to the slowdown in economic growth, shares of GSL have plunged 16.6% in the December quarter. However, the company’s performance in the October-December period is better than the Zacks Transportation—Shipping industry as well as fellow industry players, Star Bulk Carriers (SBLK ) and Euroseas ESEA , in the period.

Q4 Price Comparison

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Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report

Euroseas Ltd. (ESEA) : Free Stock Analysis Report

Global Ship Lease, Inc. (GSL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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