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Diana Shipping (DSX) to Report Q2 Earnings: What's in Store?

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Diana Shipping DSX is scheduled to release second-quarter 2021 results on Aug 3, before market open.

The shipping company has an unimpressive surprise record as its earnings lagged the Zacks Consensus Estimate in three of the last four quarters (outpacing the same just once). The average miss is 8.3%.

Diana Shipping inc. Price and EPS Surprise

Diana Shipping inc. Price and EPS Surprise
Diana Shipping inc. Price and EPS Surprise

Diana Shipping inc. price-eps-surprise | Diana Shipping inc. Quote

The Zacks Consensus Estimate for second-quarter earnings has doubled to 4 cents from 2 cents per share over the past 60 days.

Against this backdrop, let’s examine the factors that are likely to have impacted the company’s June-quarter performance.

We expect Diana Shipping’s second-quarter bottom-line performance to have been hurt by higher vessel operating expenses, mainly due to the increase in the average number of vessels in its fleet. High fuel costs are likely to have shot up total expenses as well.

However, with the gradual resumption of economic activities, the world trade gathered pace and this should aid the second-quarter results of shipping stocks like Diana Shipping. This is because the shipping industry is responsible for transporting a high proportion of goods involved in world trade.

Optimism surrounding the dry bulk marketis a huge positive for Diana Shippingand is likely to have boosted its top line in the soon-to-be-reported quarter. The northward movement of the Baltic Dry Index — a proxy for global dry freight rates across 23 routes — reflects the positivity surrounding the dry bulk market.

Earnings Whispers

Our proven model does not predict an earnings beat for Diana Shipping this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Diana Shipping has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 4 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Diana Shipping carries a Zacks Rank #2, currently.

Highlights of Q1

Diana Shipping’s first-quarter loss of 3 cents per share compared favorably with the Zacks Consensus Estimate of a loss of 6 cents. Total revenues of $39.3 million decreased10.2% year over year but surpassed the Zacks Consensus Estimate of $38.5 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Genco Shipping & Trading Limited (GNK), Eagle Bulk Shipping EGLE and Mesa Air Group MESA as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Genco Shipping has an Earnings ESP of +11.81% and is Zacks #1 Ranked, presently. The company will release second-quarter 2021 results on Aug 4.

Eagle Bulk Shipping has an Earnings ESP of +5.98% and a Zacks Rank #3 at present. The company will release second-quarter 2021 results on Aug 5.

Mesa has an Earnings ESP of +15.56% and is currently a #2 Ranked player. The company will release third-quarter fiscal 2021 results on Aug 9.


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Diana Shipping inc. (DSX) : Free Stock Analysis Report

Genco Shipping & Trading Limited (GNK) : Free Stock Analysis Report

Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report

Mesa Air Group, Inc. (MESA) : Free Stock Analysis Report

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