The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Diana Shipping beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Diana Shipping booked revenue of $56.8 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $53.8 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $64.6 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 $0.15. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.14 per share. GAAP EPS of $0.15 for Q3 were 55% lower than the prior-year quarter's $0.33 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 68.3%, 510 basis points worse than the prior-year quarter. Operating margin was 29.2%, 1,290 basis points worse than the prior-year quarter. Net margin was 21.6%, 1,930 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $50.3 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $219.4 million. The average EPS estimate is $0.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,415 members out of 2,485 rating the stock outperform, and 70 members rating it underperform. Among 408 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 393 give Diana Shipping a green thumbs-up, and 15 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 $8.95.
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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.