The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Safe Bulkers beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Safe Bulkers reported revenue of $42.5 million. The five analysts polled by S&P Capital IQ predicted net sales of $40.4 million on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter's $41.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.37. The seven earnings estimates compiled by S&P Capital IQ predicted $0.34 per share on the same basis. GAAP EPS of $0.33 for Q3 were 30% lower than the prior-year quarter's $0.47 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 81.0%, 390 basis points worse than the prior-year quarter. Operating margin was 60.2%, 620 basis points worse than the prior-year quarter. Net margin was 54.9%, 2,050 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $43.6 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $168.7 million. The average EPS estimate is $1.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 229 members rating the stock outperform and 16 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Safe Bulkers a green thumbs-up, and six 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 $8.58.
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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.