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

Diana Shipping DSX is scheduled to release second-quarter 2022 results on Jul 28, before market open.

The shipping company has a mixed surprise record as its earnings lagged the Zacks Consensus Estimate in two of the last four quarters (outpacing the same in the other two). The average miss is 10.4%.

The Zacks Consensus Estimate for second-quarter earnings has been stable at 36 cents per share over the past 90 days.

Against this backdrop, let’s examine the factors likely to have impacted DSX’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 (oil price was up 5.5% year over year in the April-June period) are likely to have shot up total expenses.

However, with the gradual resumption of economic activities, the world trade picked up the 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 market is a huge positive for Diana Shipping and is likely to have boosted its top line in the to-be-reported quarter.


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 36 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 #5 (Strong Sell), currently.

Highlights of Q1

Diana Shipping’s first-quarter 2022 earnings of 31 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Total revenues of $64.2 million increased 56.4% year over year and marginally surpassed the Zacks Consensus Estimate.

Stocks to Consider

Here are a few stocks worth considering from the broader Zacks Transportation sector, as our model shows that these have the right combination of elements to beat on second-quarter 2022 earnings:

C.H. Robinson Worldwide CHRW has an Earnings ESP of +5.24% and a Zacks Rank #2 at present. CHRW will release results on Jul 27.

C.H. Robinson has an expected earnings growth rate of 16.6% for the current year. CHRW delivered a trailing four-quarter earnings surprise of 17.1%, on average.

CHRW has a long-term earnings growth rate of 9%.

Kirby KEX has an Earnings ESP of +0.70% and a Zacks Rank of 2. KEX will release results on Jul 28.

Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.

KEX has a long-term earnings growth rate of 12%.

Southwest Airlines LUV has an Earnings ESP of +5.01% and a Zacks Rank of 3. Improved air-travel demand is likely to aid LUV’s results. LUV will release earnings on Jul 28.

Southwest has an expected earnings growth rate of 227% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average. LUV has a long-term earnings growth rate of 6%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diana Shipping inc. (DSX) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Kirby Corporation (KEX) : Free Stock Analysis Report
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