Nordic American Tankers Increases Sales but Misses Estimates on Earnings

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Nordic American Tankers (NYS: NAT) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Nordic American Tankers whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share improved.


Margins dropped across the board.

Revenue details
Nordic American Tankers booked revenue of $30.5 million. The four analysts polled by S&P Capital IQ hoped for sales of $35.4 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $25.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.18. The five earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. GAAP EPS were -$0.18 for Q1 versus -$0.15 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 47.2%, 380 basis points worse than the prior-year quarter. Operating margin was -28.5%, 280 basis points worse than the prior-year quarter. Net margin was -30.8%, 350 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $26.8 million. On the bottom line, the average EPS estimate is -$0.23.

Next year's average estimate for revenue is $109.3 million. The average EPS estimate is -$0.87.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 925 members out of 967 rating the stock outperform, and 42 members rating it underperform. Among 176 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give Nordic American Tankers a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nordic American Tankers is hold, with an average price target of $14.25.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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