Diana Shipping Meets on the Top Line, Misses Where it Counts

Diana Shipping (NYSE: DSX  ) reported earnings on March 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Diana Shipping met expectations on revenues and missed estimates on earnings per share.

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

Margins shrank across the board.

Revenue details
Diana Shipping logged revenue of $50.0 million. The 11 analysts polled by S&P Capital IQ expected revenue of $49.9 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $57.7 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 $0.06. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS of $0.06 for Q4 were 76% lower than the prior-year quarter's $0.25 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 57.2%, much worse than the prior-year quarter. Operating margin was 13.0%, much worse than the prior-year quarter. Net margin was 10.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $41.9 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $164.2 million. The average EPS estimate is -$0.17.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,402 members out of 2,469 rating the stock outperform, and 67 members rating it underperform. Among 389 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 377 give Diana Shipping a green thumbs-up, and 12 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 $8.53.

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