Genco Shipping & Trading Posts a Surprise Profit
Genco Shipping & Trading (NYS: GNK) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Genco Shipping & Trading beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly. The profit was a surprise, as analysts had predicted a loss.
Margins contracted across the board.
Genco Shipping & Trading tallied revenue of $97.1 million. The six analysts polled by S&P Capital IQ expected to see sales of $95.2 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $130.6 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 $0.01. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS of $0.01 for Q4 were 99% lower than the prior-year quarter's $0.90 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 68.1%, 1,060 basis points worse than the prior-year quarter. Operating margin was 24.7%, 2,080 basis points worse than the prior-year quarter. Net margin was 0.3%, 2,630 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $73.4 million. On the bottom line, the average EPS estimate is -$0.52.
Next year's average estimate for revenue is $305.0 million. The average EPS estimate is -$1.81.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genco Shipping & Trading is underperform, with an average price target of $5.79.
Over the decades, small-cap stocks, like Genco Shipping & Trading have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Genco Shipping & Trading to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.