Please ensure Javascript is enabled for purposes of website accessibility

The Gory Details on Ship Finance International's Double Miss

By Seth Jayson - Updated Apr 10, 2017 at 1:08PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Ship Finance International (NYSE: SFL) reported earnings on May 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ship Finance International missed estimates on revenues and missed estimates on earnings per share.

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

Margins contracted across the board.

Revenue details
Ship Finance International booked revenue of $65.1 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $67.6 million on the same basis. GAAP reported sales were 7.7% lower than the prior-year quarter's $70.5 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 $0.19. The five earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. Non-GAAP EPS of $0.19 for Q1 were 69% lower than the prior-year quarter's $0.61 per share. GAAP EPS of $0.38 for Q1 were 22% lower than the prior-year quarter's $0.49 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 60.2%, 710 basis points worse than the prior-year quarter. Operating margin was 35.6%, much worse than the prior-year quarter. Net margin was 49.7%, 550 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $67.6 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $338.0 million. The average EPS estimate is $1.11.

Investor sentiment
The stock has a four-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 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Ship Finance International a green thumbs-up, and eight 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 $18.75.

Is Ship Finance International the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

SFL Corporation Ltd. Stock Quote
SFL Corporation Ltd.
SFL
$11.34 (0.80%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.