What Happened?
Shares of pangaea Logistics (NASDAQ: PANL) jumped 6.3% in the morning session after the company reported second-quarter revenue that significantly surpassed analyst expectations, while its loss per share was narrower than anticipated. The maritime logistics company posted revenue of $156.7 million, a 21.2% beat against the $129.2 million consensus estimate. This performance was noteworthy as it came amid challenging cyclical headwinds that have led to declining sales for many of its peers. The adjusted loss per share of $0.02 also came in ahead of Wall Street's forecast for a $0.03 loss. Despite the strong top-line growth, profitability came under pressure as the company's operating margin declined to 2.3% from 5.8% in the same quarter last year, reflecting lower gross margins and increased operating expenses.
After the initial pop the shares cooled down to $5.04, up 4.3% from previous close.
Is now the time to buy Pangaea? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Pangaea’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 15.5% on the news that the company reported impressive fourth quarter 2024 results, which blew past analysts' sales and EBITDA estimates. The key highlight for the quarter was an 18% year-on-year growth in adjusted EBITDA, driven by a 17% increase in shipping days. Despite a 10% drop in Time Charter Equivalent (TCE - a measure of a vessel's average daily revenue performance) rates compared to last year, revenue climbed due to the expanded fleet and increased shipping activity. Looking ahead, Pangaea's expanded fleet size following its merger with SSI allows expansion into new segments and improved logistics capabilities. Overall, we think this was a solid quarter with some key areas of upside.
Pangaea is down 10.6% since the beginning of the year, and at $5.04 per share, it is trading 32.1% below its 52-week high of $7.42 from September 2024. Investors who bought $1,000 worth of Pangaea’s shares 5 years ago would now be looking at an investment worth $2,163.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
