As everyone knows, earnings reports are merely convenient fictions that supposedly conform to agreed upon accounting rules but that companies frequently subvert those rules to make their financials seems better than they are. Likewise, everyone knows that stock analysts --collectively-- are frequently wrong.
But the collective opinion of those analysts are right often enough that their warnings about future earnings declines need to be considered. Here’s is what they are saying:
“DorianG’s revenue and earnings are forecast to decline at 3.5% and 23% per annum respectively. EPS is expected to decline by 23.1% per annum. Return on equity is forecast to be 8.7% in 3 years.”
In other words, buying LPG on the basis of yesterday’s earnings report is likely to be buying a future risk. Caveat Emptor!