Stocks I Own – May 26th, 2023

Hello readers, welcome to today’s daily blog post where I will be discussing the recent financial results and announcements of some of the stocks I currently own. Today we will take a look at Diana Shipping Inc., PDD Holdings, CSW Industrials, NVIDIA and EnerSys. So, let’s dive right in and see how these companies have been performing

Diana Shipping Inc. Reports Strong First Quarter Results

Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, has reported a net income of $22.7 million and net income attributed to common stockholders of $21.3 million for Q1 2023. Although this is a decline from the same period last year, it is important to note that earnings per share for Q1 2023 came in at $0.22 basic and diluted, compared to earnings per share of $0.32 basic and $0.31 diluted in the same quarter in 2022.

The company’s increase in time charter revenues for the first quarter due to vessel acquisitions was impressive. However, this increase was partially offset by decreased average charter rates compared to the same quarter last year. With a declared dividend of $0.15 per share, payable to all shareholders of record as of June 12, 2023, the company is solidifying its commitment to shareholder returns. Additionally, Diana Shipping has re-affirmed its previously announced dividend guidance in an amount of not less than $0.15 per share for the next two quarters of 2023.

Looking forward, I believe Diana Shipping is a good investment as the dry bulk shipping market continues to show strength. With a dividend yield of 6.39% and a Price-to-Earnings ratio of 6.15, the company’s stock appears undervalued. Therefore, I would recommend buying the stock. However, investors should keep the potential risks associated with the global shipping market in mind, such as high volatility in freight rates, increased fuel costs, and geopolitical risks. Therefore, I recommend that they keep a close eye on these factors to make an informed decision.

PDD Holdings Reports Impressive Q1 Results, Continues to Invest in Ecosystem Growth

PDD Holdings, an e-commerce platform company operating in China, has released its unaudited financial results for Q1 2023, with impressive revenue and operating profit growth. The total revenues for the quarter were RMB37,637.1 million, an increase of 58% from the same quarter of 2022. The company’s operating profit rose significantly, up to RMB6,929.0 million, an increase of 222% year-over-year.

Non-GAAP operating profit in the quarter was even higher, reaching RMB8,462.4 million. The net income attributable to ordinary shareholders in the quarter was RMB8,101.0 million, an increase of 212% year-over-year. Despite these impressive figures, PDD plans to increase its investment in research and development (R&D) to further drive growth and efficiency.

The company aims to strengthen its ecosystem and has launched a ’10 Billion Ecosystem Initiative’ to support quality merchants. “Patient investment is essential for us to promote ecosystem vibrancy and sustainability,” said Ms. Jun Liu, VP of Finance at PDD Holdings.

In my opinion, the company’s continued investment in R&D and commitment to ecosystem growth provide a positive outlook for the future. I would recommend holding onto PDD stocks as the company’s prospects appear bright.

CSW Industrials reports record results for fiscal year 2023

CSW Industrials (Nasdaq: CSWI) has reported record financial results for the fiscal year 2023, which ended March 31. The company achieved total revenue of $757.9 million, an increase of 21% from the previous year. Net income attributable to CSWI rose 39.1% to $96.4 million, significantly above the $69.3 million it achieved in 2022. Earnings per diluted share stood at $6.20, a 41.2% increase, and EBITDA increased 30.6% to $174.1 million. CSWI experienced substantial margin expansion of 170-370 basis points, allowing it to pay down $23.5 million of debt and achieve a leverage ratio of approximately 1.3x.

These results show that CSWI is a strong performer in the industrial products sector and has successfully managed its growth while reducing its debt burden. As an investor, I would recommend holding on to this stock as it seems to have a promising future.

NVIDIA Reports Record Data Center Revenue in Q1 Fiscal 2024

NVIDIA, the leading manufacturer of graphics processing units (GPUs) and system-on-a-chip (SoC) units, recently reported their quarterly revenue of $7.19 billion, up 19% from the previous quarter. The company’s Data Center revenue of $4.28 billion set a new record, indicating the growth in popularity of AI and machine learning applications. NVIDIA’s CEO, Jensen Huang, highlighted that the computer industry is undergoing two simultaneous transitions: accelerated computing and generative AI.

NVIDIA’s Q1 Fiscal 2024 report showed a net income of $2.04 billion, up 44% from the previous quarter, due to strong sales growth of NVIDIA’s data center products. Huang also stated that the company is significantly increasing its supply to meet surging demand for products like the H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand, and BlueField-3 DPU.

Based on the strong Q1 earnings report, I recommend buying NVIDIA’s stock. The positive trend in revenue growth, increasing demand for data center products, and robust outlook for Q2 fiscal 2024 indicate that NVIDIA is well-positioned for continued success.

EnerSys Delivers Record Fourth Quarter Results, Achieves Sustainable Growth

EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, has announced its fourth quarter fiscal 2023 results with a solid record of sustainable growth and long-term prospects.

The company experienced a record net sale of $990 million, which is a 9% increase year-over-year. This success is attributed to strong price realization, organic growth, and a partial contribution from acquisitions. The 24.9% gross margin and 1.8X net leverage ratio demonstrate the financial strength and operational efficiency of EnerSys.

EnerSys also achieved record operating earnings of $95 million, representing a 114% increase and adjusted operating earnings of $107 million, representing a 60% increase year-over-year. The company’s 2022 Sustainability Update has significantly reduced its greenhouse gas emissions while continuing to grow its business.

In terms of future outlook, EnerSys has a backlog of $1.3 billion, but this has eased slightly by 7%, backed by stable demand trends. The company’s hiring of Shannon Thomas as Chief Human Resources Officer reflects its commitment to building a diverse and inclusive workforce. Additionally, the Better Practice Award earned from the U.S. Department of Energy Better Plants Program reinforces EnerSys’s leadership in environmental, social, and governance (ESG) issues.

As a shareholder, I am delighted with EnerSys’s impressive financial performance, commitment to sustainability, and leadership in ESG issues. With a strong financial position and significant market opportunities, I would recommend buying and holding EnerSys stock for the long-term.