logo
Pangaea (NASDAQ:PANL) Reports Sales Below Analyst Estimates In Q1 Earnings

Pangaea (NASDAQ:PANL) Reports Sales Below Analyst Estimates In Q1 Earnings

Yahoo13-05-2025

Pangaea Logistics (NASDAQ:PANL) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 17.2% year on year to $122.8 million. Its non-GAAP loss of $0.03 per share was 74.3% above analysts' consensus estimates.
Is now the time to buy Pangaea? Find out in our full research report.
Revenue: $122.8 million vs analyst estimates of $128.5 million (17.2% year-on-year growth, 4.4% miss)
Adjusted EPS: -$0.03 vs analyst estimates of -$0.12 (74.3% beat)
Adjusted EBITDA: $14.77 million vs analyst estimates of $9.24 million (12% margin, 59.9% beat)
Operating Margin: 2.4%, down from 10.5% in the same quarter last year
Free Cash Flow was -$4.76 million, down from $8.80 million in the same quarter last year
Market Capitalization: $263.2 million
"We showed disciplined execution during the first quarter, maintaining our cargo-focused strategy and delivering consistent premium TCE rates supported by our portfolio of long-term contracts," stated Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions.
Established in 1996, Pangaea Logistics (NASDAQ:PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.
Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Pangaea's 5.3% annualized revenue growth over the last five years was tepid. This was below our standard for the industrials sector and is a rough starting point for our analysis.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Pangaea's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 5.5% annually. Pangaea isn't alone in its struggles as the Marine Transportation industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time.
This quarter, Pangaea's revenue grew by 17.2% year on year to $122.8 million but fell short of Wall Street's estimates.
Looking ahead, sell-side analysts expect revenue to grow 10.5% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and implies its newer products and services will fuel better top-line performance.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Pangaea has managed its cost base well over the last five years. It demonstrated solid profitability for an industrials business, producing an average operating margin of 10.8%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low.
Analyzing the trend in its profitability, Pangaea's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.
This quarter, Pangaea generated an operating profit margin of 2.4%, down 8.1 percentage points year on year. Since Pangaea's gross margin decreased more than its operating margin, we can assume its recent inefficiencies were driven more by weaker leverage on its cost of sales rather than increased marketing, R&D, and administrative overhead expenses.
Revenue trends explain a company's historical growth, but the change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Sadly for Pangaea, its EPS declined by more than its revenue over the last two years, dropping 44.8%. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.
Diving into the nuances of Pangaea's earnings can give us a better understanding of its performance. Pangaea's operating margin has declined by 4.4 percentage points over the last two yearswhile its share count has grown 41.5%. This means the company not only became less efficient with its operating expenses but also diluted its shareholders.
In Q1, Pangaea reported EPS at negative $0.03, down from $0.14 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street expects Pangaea's full-year EPS of $0.48 to grow 12.8%.
We were impressed by how significantly Pangaea blew past analysts' EPS and EBITDA expectations this quarter. On the other hand, its revenue missed significantly. Overall, we think this was a decent quarter with some key metrics above expectations. The market seemed to be hoping for more, and the stock traded down 3.5% to $4.27 immediately after reporting.
Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

As Google AI Takes Over Search, News Sites Lose Clicks and Cut Jobs
As Google AI Takes Over Search, News Sites Lose Clicks and Cut Jobs

Yahoo

time26 minutes ago

  • Yahoo

As Google AI Takes Over Search, News Sites Lose Clicks and Cut Jobs

Google (NASDAQ:GOOG) is drawing criticism from media executives who say its growing use of artificial intelligence is reducing traffic to news outlets, forcing them to rethink their digital strategies and slash jobs. According to a Wall Street Journal report Tuesday, publishers are reporting major declines in referral traffic as Google's AI Overviews and chatbot features increasingly serve answers directly to users eliminating the need to click on search results. The shift from a search engine to an answer engine is real, said The Atlantic's CEO Nicholas Thompson, who added that media companies now have to explore new approaches to stay relevant. Data from analytics firm Similarweb, cited in the report, shows steep drops in organic search traffic across major publishers: HuffPost's desktop and mobile traffic more than halved in the past three years. The Washington Post saw nearly the same level of decline. Business Insider reported a 55% drop and recently laid off 21% of its workforce. The New York Times saw its share of organic search traffic shrink to 36.5% in April 2025, down from almost 44% in 2022. Although The Wall Street Journal's search traffic rose in raw numbers, its share of total traffic dipped to 24% from 29% over the same period. WaPo CEO William Lewis warned that click-free search answers represent a serious threat to journalism. Beyond news, Google's AI tools have also dented traffic to travel guides, health information, and product review pages. The report notes that Google's upcoming AI Mode could hit even harder. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Here's Why LifeVantage (NASDAQ:LFVN) Has Caught The Eye Of Investors
Here's Why LifeVantage (NASDAQ:LFVN) Has Caught The Eye Of Investors

Yahoo

time32 minutes ago

  • Yahoo

Here's Why LifeVantage (NASDAQ:LFVN) Has Caught The Eye Of Investors

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. In contrast to all that, many investors prefer to focus on companies like LifeVantage (NASDAQ:LFVN), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Even modest earnings per share growth (EPS) can create meaningful value, when it is sustained reliably from year to year. So it's easy to see why many investors focus in on EPS growth. Impressively, LifeVantage's EPS catapulted from US$0.29 to US$0.73, over the last year. It's not often a company can achieve year-on-year growth of 154%. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The good news is that LifeVantage is growing revenues, and EBIT margins improved by 4.1 percentage points to 5.8%, over the last year. Both of which are great metrics to check off for potential growth. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image. See our latest analysis for LifeVantage In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of LifeVantage's forecast profits? It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Shareholders will be pleased by the fact that insiders own LifeVantage shares worth a considerable sum. To be specific, they have US$30m worth of shares. This considerable investment should help drive long-term value in the business. That amounts to 19% of the company, demonstrating a degree of high-level alignment with shareholders. LifeVantage's earnings have taken off in quite an impressive fashion. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So based on this quick analysis, we do think it's worth considering LifeVantage for a spot on your watchlist. Of course, just because LifeVantage is growing does not mean it is undervalued. If you're wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Although LifeVantage certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Cardano's ADA Gains 3%, Buoyed by Inclusion in Nasdaq's Crypto Index
Cardano's ADA Gains 3%, Buoyed by Inclusion in Nasdaq's Crypto Index

Yahoo

time32 minutes ago

  • Yahoo

Cardano's ADA Gains 3%, Buoyed by Inclusion in Nasdaq's Crypto Index

Cardano's native token ADA ADA added 3% in the past 24 hours after Nasdaq said it expanded its crypto benchmark index from five to nine assets, adding ADA alongside XRP XRP, Solana SOL and Stellar XLM. ADA experienced significant price volatility overnight, establishing a 8.8% trading range between $0.66 and $0.72, according to CoinDesk Research's technical analysis. It was recently trading at $0.6951. Trading volumes for ADA have increased 68% over the past 24 hours, suggesting active market participation despite uncertain conditions. Its addition to the Nasdaq index could significantly increase Cardano's visibility among traditional investors. Market analysts note the $0.70 level has emerged as a crucial psychological support zone that will likely determine ADA's short-term trajectory following its earlier bullish momentum. The CoinDesk 20 Index, which tracks the broader crypto market performance, is up about 4% over the past 24 hours. Technical Analysis ADA exhibited significant volatility over the 24-hour period, establishing a 8.8% trading range between $0.66 and $0.72 before dropping 3.3%. The price action formed a clear uptrend from $0.67 to $0.72 with strong volume support at the $0.68 level. The recent pullback from $0.72 to $0.69 suggests profit-taking after the rally, with the 0.70 level emerging as a key psychological support zone. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store