Navios Maritime Holdings Inc. (NM)’s Future: A Look

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Next Tuesday, Navios Maritime Holdings Inc. (NYSE:NM) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Navios is far from the only company to suffer greatly from weak conditions in dry-bulk shipping lately, as low rates and a glut of capacity have put extreme financial pressure on the entire industry. With stubbornly persistent economic trends continuing to work against the company, can Navios pull itself out of a potential downward spiral of losses? Let’s take an early look at what’s been happening with Navios Maritime Holdings Inc. (NYSE:NM) over the past quarter and what we’re likely to see in its quarterly report.

Stats on Navios Maritime

Analyst EPS Estimate ($0.19)
Year-Ago EPS $0.09
Revenue Estimate $125.96 million
Change From Year-Ago Revenue (17%)
Earnings Beats in Past 4 Quarters 0

Source: Yahoo! Finance.

Will Navios Maritime keep sinking in red ink?
Navios hasn’t inspired analysts in recent months, as they’ve made substantial cuts in their views on the company’s earnings prospects. First-quarter reductions in estimates of $0.07 per share pale in comparison to revisions to the full 2013 year, which have more than doubled previous loss expectations. The stock, though, has reflected greater investor optimism, bouncing nearly 30% since mid-February.

The apparent disconnect between earnings expectations and recent stock-price moves stems from analysts attempting to call a bottom in dry-bulk shipping. As beaten-down as DryShips Inc. (NASDAQ:DRYS) and Diana Shipping Inc. (NYSE:DSX) have gotten, the entire industry still has structural difficulties to overcome before it can recover. Not only do Navios, DryShips Inc. (NASDAQ:DRYS), and Diana compete among themselves and other shipping specialists, but they also have to face private companies establishing their own fleets to serve their own particular business-shipping needs.

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