Diana Shipping Tops Street; Shares Up

Updated to correct misstated year-earlier earnings figures for Diana. The company earned $57.5 million in the third quarter of 2008, not $94 million.

ATHENS (TheStreet) -- Like many of its dry-bulk cargo peers, Diana Shipping(DSX Quote) surpassed Wall Street forecasts for its third quarter, even as results continued to show severe declines from a year ago.

Diana, well known as one of the more conservative publicly traded Greek dry bulkers, has had to contend with a drop-off in pricing from the third quarter last year, when marine shippers were just beginning to feel the full effect of the financial collapse.

The average daily rate fetched by Diana's fleet of 19 ships during the third quarter came to $32,367, down from $48,207 a year ago.

Still, the company managed to turn in a profit above expectations. Earlier this earnings season, DryShips(DRYS Quote) and Genco Shipping & Trading(GNK Quote) were able to do the same, DryShips coming in 35% above estimates and Genco 9% above.

Diana reported net income of $28.7 million, or 36 cents a share, beating the consensus target by two pennies. Still, that's down almost 50% from a year ago, when Diana earned $57.5 million, or 77 cents a share.

Revenue fell 33% to $58.2 million from $87.4 million a year ago. Analysts were looking for a top-line reading of $55.5 million.

Diana recently announced the delivery of a capesize ship and a long-term charter for it. (At this point, Diana charters most of its capesize vessels, the largest class of dry-bulk hauler in the world, to the Australian iron-ore mining giant BHP Billiton(BHP Quote)). The company said it will take delivery of another capesize ship, bringing its fleet to 21, in February 2010. It also said it already has a charter for the boat.