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Ship Finance International Beats Analyst Estimates on EPS

Ship Finance International (NYSE: SFL  ) reported earnings on Nov. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ship Finance International whiffed on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share grew significantly.

Gross margins dropped, operating margins dropped, net margins increased.

Revenue details
Ship Finance International reported revenue of $74.3 million. The five analysts polled by S&P Capital IQ foresaw revenue of $92.4 million on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $74.8 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 $0.44. The six earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.44 for Q3 were 26% higher than the prior-year quarter's $0.35 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 63.8%, 970 basis points worse than the prior-year quarter. Operating margin was 42.7%, 1,020 basis points worse than the prior-year quarter. Net margin was 46.5%, 980 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $103.2 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $317.5 million. The average EPS estimate is $1.68.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 503 members out of 529 rating the stock outperform, and 26 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Ship Finance International 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 Ship Finance International is outperform, with an average price target of $18.10.

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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. The Motley Fool has no positions in the stocks mentioned above. 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.

Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 06, 2012, at 12:21 AM, justinmaxwell86 wrote:

    dividend went from 38cents to 78cents, a yield of ~9% to ~19%. What fundamentals support the increase of the doubling of the dividend? The total net income for 3 of the last 4 years has been dropping, the annual eps doing somewhat the same, and the net income as well. I am invested in sfl, but am wondering why the sudden increase in dividend yield... Something screams dividend trap. On the flip side, over the course of the same 4 yrs, assets have increased slightly, while liabilities dropped a bit from 2008. Im having a hard time connecting the dots here.

  • Report this Comment On December 06, 2012, at 12:26 AM, justinmaxwell86 wrote:

    i guess if you break it down quarterly, fy q1 and q2 eps have blown the estimates out of the water. Hmmmm.... time will tell i guess.

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Ship Finance Inter… CAPS Rating: **