What to Expect From Safe Bulkers

Safe Bulkers (NYSE: SB  ) is expected to report Q2 earnings around July 16. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Safe Bulkers' revenues will grow 6.0% and EPS will compress 13.9%.

The average estimate for revenue is $43.6 million. On the bottom line, the average EPS estimate is $0.31.

Revenue details
Last quarter, Safe Bulkers notched revenue of $44.1 million. GAAP reported sales were 4.3% higher than the prior-year quarter's $42.3 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.32. GAAP EPS of $0.30 for Q1 were 27% lower than the prior-year quarter's $0.41 per share.

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

Recent performance
For the preceding quarter, gross margin was 78.7%, 760 basis points worse than the prior-year quarter. Operating margin was 56.7%, 1,200 basis points worse than the prior-year quarter. Net margin was 49.0%, 1,560 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $185.6 million. The average EPS estimate is $1.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 239 members out of 258 rating the stock outperform, and 19 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Safe Bulkers a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Safe Bulkers is outperform, with an average price target of $8.40.

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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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  • Report this Comment On July 13, 2012, at 9:25 PM, psl8er wrote:

    This is just another dry bulk company that is not going to survive. The rates for today's ships only cover operating costs and allow no payment of interest let alone principal on any debt.

    China's consumption of raw materials continues to decline along with its manufacturing sector.

    The future for small companies with plenty of debt is very bleak. No upside in sight.

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