Genco Shipping & Trading Ltd. Earnings: Here’s Why the Stock is Falling Now

Genco Shipping & Trading Ltd. (NYSE:GNK) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.47%.

Genco Shipping & Trading Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-1.06 in the quarter versus EPS of $0.00 in the year-earlier quarter.

Revenue: Decreased 49.35% to $49.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Genco Shipping & Trading Ltd. reported adjusted EPS loss of $1.06 per share. By that measure, the company missed the mean analyst estimate of $-0.88. It missed the average revenue estimate of $53.29 million.

Quoting Management: Robert Gerald Buchanan, President, commented, “During the fourth quarter and full year 2012, management maintained an opportunistic time charter approach in a challenging drybulk market. Our goal is to enhance future performance by employing our vessels on short-term and spot market-related contracts that preserve the ability to benefit from a rising freight rate environment while maintaining an efficient cost structure. With a large and modern fleet, we are in a strong position to capitalize on the positive long-term demand for iron ore, coal, steel and other core commodities and continue to provide multinational charterers with high-quality tonnage.”

Key Stats (on next page)…