The 10-second takeaway
For the quarter ended March 31 (Q1), Safe Bulkers beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Safe Bulkers notched revenue of $44.1 million. The two analysts polled by S&P Capital IQ expected net sales of $41.7 million on the same basis. 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 came in at $0.32. The six earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. 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.
For the 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.
Next quarter's average estimate for revenue is $45.7 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $183.5 million. The average EPS estimate is $1.25.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 237 members out of 254 rating the stock outperform, and 17 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Safe Bulkers a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Safe Bulkers is hold, 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.