What: Shares of Diana Shipping (NYSE:DSX) plunged 11% on Thursday after the company reported third-quarter earnings.

So what: Revenue for the quarter fell 14% to $38.9 million and the company swung from a profit of $6.3 million a year ago to a $18.8 million loss, or $0.24 per share. The loss exceeded the $0.20 loss Wall Street analysts projected and was even more surprising because revenue topped the $37.4 million estimate, meaning costs were much higher than anticipated.  

Now what: There's not a lot of positive news to talk about at Diana Shipping as the dry bulk market continues to struggle mightily in 2015. Losses for the year have reached $46.5 million, more than a tenth of the company's market cap, and show no signs of slowing down. What's equally concerning is that long-term debt rose from $405.5 million a year ago to $532.8 million, just as losses were growing.

There's not a lot to like from Diana Shipping, and as long as dry bulk rates are low and the company is reporting losses, I think this is a stock to avoid.

Travis Hoium has no position in any stocks mentioned. 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.