U.S. markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.33%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.07%)
     
  • USD/JPY

    135.1700
    +0.2370 (+0.18%)
     
  • BTC-USD

    21,327.31
    +601.50 (+2.90%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

Diana Shipping Inc. (NYSE:DSX) Analysts Are Pretty Bullish On The Stock After Recent Results

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

It's been a pretty great week for Diana Shipping Inc. (NYSE:DSX) shareholders, with its shares surging 11% to US$6.25 in the week since its latest first-quarter results. It was a credible result overall, with revenues of US$64m and statutory earnings per share of US$0.64 both in line with analyst estimates, showing that Diana Shipping is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Diana Shipping

earnings-and-revenue-growth
earnings-and-revenue-growth

After the latest results, the five analysts covering Diana Shipping are now predicting revenues of US$292.0m in 2022. If met, this would reflect a sizeable 22% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to descend 14% to US$0.88 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$277.3m and earnings per share (EPS) of US$1.31 in 2022. While next year's revenue estimates increased, there was also a large cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

The analysts also upgraded Diana Shipping's price target 5.5% to US$7.18, implying that the higher sales are expected to generate enough value to offset the forecast decline in earnings. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Diana Shipping at US$9.50 per share, while the most bearish prices it at US$5.20. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Diana Shipping's growth to accelerate, with the forecast 31% annualised growth to the end of 2022 ranking favourably alongside historical growth of 5.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 8.5% annually. So it's clear with the acceleration in growth, Diana Shipping is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Diana Shipping. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Diana Shipping. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Diana Shipping going out to 2024, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 4 warning signs for Diana Shipping (1 makes us a bit uncomfortable!) that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.