Earnings Preview: Diana Shipping
On Monday, February 22, Diana Shipping (NYSE:DSX) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Wall Street expects an EPS loss of $0.06 and sales around $40.61 million. In the same quarter last year, Diana Shipping posted EPS of $0.06 on sales of $51.51 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
The Wall Street consensus estimate for earnings would represent no change for the company. Revenue would be down 21.16% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
EPS Estimate | -0.08 | -0.08 | -0.05 | 0.02 |
EPS Actual | -0.17 | -0.14 | -0.13 | -0.06 |
Revenue Estimate | 41.16 M | 40.79 M | 44.48 M | 50.52 M |
Revenue Actual | 42.34 M | 40.98 M | 43.76 M | 51.51 M |
Stock Performance
Shares of Diana Shipping were trading at $2.965 as of February 18. Over the last 52-week period, shares are up 33.33%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Diana Shipping is scheduled to hold the call at 09:00:00 ET and can be accessed here.
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