Genco Shipping & Trading Posts a Surprise Profit

Genco Shipping & Trading (NYSE: 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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment

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.

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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 of Motley 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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