The current earnings reporting season, typically for firms reporting the calendar quarter to June 30, will provide detailed information regarding corporate performance during COVID-19 pandemic. As discussed in Panjiva’s research of April 22, international trade data can provide a useful guide to corporate performance ahead of earnings reports as well as higher granularity regarding activity levels, mix of performance and behavioral changes in supply chains.

An analysis of Panjiva’s shipping data and corporate reporting dates, drawn via S&P Global Market Intelligence’s XpressFeed product, shows the weeks of July 30 and August 4 represent the peak reporting season for firms that feature heavily in international trade. A series of applications of Panjiva’s data to analyze corporate earnings can be found in our dedicated microsite here.

Chart compares number of firms reporting earnings by date to total number of container shipping records (measured in 20-foot equivalent units) linked to those companies in Panjiva’s U.S. seaborne import data. Source: Panjiva

One example is pump and filtration manufacturer Pentair which reported a 10.9% year over year decline in revenues. By comparison, consensus estimates, gathered by S&P Global Market Intelligence, called for a revenue decline of 14.4%. Panjiva’s U.S. seaborne import data showed that shipments linked to the firm fell by 8.1% year over year in the quarter. 

The seaborne shipping data shows the downturn was constant during the quarter peaking at a 9.4% drop in April while May and June shipments fell by 7.7% and 7.1% respectively. 

There was also a marked divergence in shipping within key products. Imports of pumps and purifiers fell by 30.6% and 27.9% respectively while shipments of electrical products surged 25.9% higher, illustrating the challenges within supply chains caused by COVID-19 even if overall activity remains constant.

The firm has also noted that COVID-19 “could potentially disrupt our ability to meet new product introductions, impact our manufacturing capability, and disrupt our global supply chains“. That upheaval has already been apparent. The firm had already rearranged its supply chain in part as a response to U.S. tariffs on imports from China. Shipments from China fell by 3.5% year over year in 2019 while those from Taiwan and India surged by 39.6% and 34.1% respectively. 

Yet, in June there was a small increase in shipments from China and Taiwan of 1.9% and 2.5% respectively while shipments from India and Europe declined by 15.4% and 39.3% respectively due to the timing of manufacturing lockdowns.

Chart segments U.S. seaborne imports linked to Pentair by origin. Source: Panjiva

Replicating data in Xpressfeed

XpressFeed’s key developments database can be joined to Panjiva’s international shipping data using CIQ identifiers as shown in the code block below.