Diana Shipping Meets on the Top Line, Misses Where it Counts

Diana Shipping (NYSE: DSX  ) reported earnings on March 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Diana Shipping met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted. GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Diana Shipping logged revenue of $50.0 million. The 11 analysts polled by S&P Capital IQ expected revenue of $49.9 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $57.7 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 $0.06. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS of $0.06 for Q4 were 76% lower than the prior-year quarter's $0.25 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 57.2%, much worse than the prior-year quarter. Operating margin was 13.0%, much worse than the prior-year quarter. Net margin was 10.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $41.9 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $164.2 million. The average EPS estimate is -$0.17.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,402 members out of 2,469 rating the stock outperform, and 67 members rating it underperform. Among 389 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 377 give Diana Shipping a green thumbs-up, and 12 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 $8.53.

Looking for alternatives to Diana Shipping? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

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 position in any of the stocks mentioned. 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 (0) | Recommend This Article (2)

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.

Be the first one to comment on this article.

DocumentId: 2313264, ~/Articles/ArticleHandler.aspx, 8/1/2014 6:53:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement