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What's in the Offing for Daseke (DSKE) This Earnings Season?

Improvement in revenues at both segments is likely to aid Daseke's (DSKE) Q3 results.

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This story originally appeared on Zacks

Daseke DSKE is slated to release third-quarter 2021 results on Oct 22, before market open.

- Zacks

The transportation company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being in excess of 100%.

Daseke, Inc. Price and EPS Surprise

Daseke, Inc. Price and EPS Surprise

Daseke, Inc. price-eps-surprise | Daseke, Inc. Quote

The Zacks Consensus Estimate for third-quarter earnings per share has been revised upward to 32 cents per share from 13 cents over the past 90 days.

 

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

We expect Daseke’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 and economic activities picking up the pace, revenues at the Flatbed Solutions and Specialized Solutions units are likely to have increased sequentially. The Zacks Consensus Estimate for Flatbed Solutions’ revenues in the to-be-reported quarter currently indicates a 3.9% sequential increase. Also, the Zacks Consensus Estimate for revenues from the Specialized Solutions segment indicates a 4.9% sequential rise.

With improvement in the freight scenario, freight revenues (company and owner operator) at both segments are likely to have bettered sequentially. The Zacks Consensus Estimate for third-quarter freight revenues (company and owner operator)at the Flatbed segment is currently pegged at $140 million, indicating a 2.2% increase from the second-quarter 2021 actuals. The Zacks Consensus Estimate for third-quarter freight revenues (company and owner operator)at the Specialized Solutions segment is currently pegged at $165 million, indicating a 3.7% increase from the second-quarter 2021 actuals.

However, higher oil price shot up fuel expenses, 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 Dasekethis 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:  Dasekehas 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: Daseke carries a Zacks Rank #3, currently.

Highlights of Q2 Earnings

Dasekes second-quarter earnings per share of 49 cents beat the Zacks Consensus Estimate of 9 cents. The bottom line surged in excess of 100% year over year. Revenues of $404 million not only increased 14.9% year over year but also outpaced the Zacks Consensus Estimate of $369.7 million.

Stocks to Consider

Investors interested in the broader Transportation  sector may consider C.H. Robinson Worldwide CHRWRyder System R and Schneider National SNDR as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

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

Ryder has an Earnings ESP of +4.73% and a Zacks Rank #1 at present. The company is scheduled to report third-quarter 2021 earnings numbers on Oct 27.

Schneider National has an Earnings ESP of +2.37% and is currently a #2 Ranked player. The company will release third-quarter 2021 results on Oct 28.



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