Diana Shipping Beats Estimates but Has a Big Earnings Drop
Diana Shipping (NYS: DSX) reported earnings on Feb. 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Diana Shipping beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Diana Shipping reported revenue of $57.7 million. The nine analysts polled by S&P Capital IQ expected to see a top line of $56.4 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $73.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.25. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. GAAP EPS of $0.25 for Q4 were 38% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.9%, 420 basis points worse than the prior-year quarter. Operating margin was 35.6%, 980 basis points worse than the prior-year quarter. Net margin was 35.1%, 920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $55.8 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $219.4 million. The average EPS estimate is $0.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,464 members out of 2,527 rating the stock outperform, and 63 members rating it underperform. Among 518 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 504 give Diana Shipping a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Diana Shipping is outperform, with an average price target of $10.65.
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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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