EuroDry (NASDAQ:EDRY – Get Free Report) announced its earnings results on Wednesday. The company reported $2.32 EPS for the quarter, beating the consensus estimate of $2.10 by $0.22, FiscalAI reports. EuroDry had a net margin of 15.02% and a return on equity of 8.77%. The company had revenue of $19.41 million during the quarter, compared to the consensus estimate of $20.00 million.
Here are the key takeaways from EuroDry’s conference call:
- Third-quarter revenue rose 34.9% to $19.4 million, while net income attributable to controlling shareholders was $6.9 million versus a $0.7 million loss a year earlier; adjusted EBITDA increased to $11.3 million from $4.1 million. Average fleet TCE rates rose to $20,551 per day from $13,232.
- Dry-bulk conditions were stronger year over year, but recent trends were mixed: Panamax spot and one-year charter rates eased from third-quarter averages, while Ultramax spot rates strengthened. Management said the 2027 FFA curve is below current rates and highlighted geopolitical and economic uncertainty.
- EuroDry has five newbuildings scheduled for delivery from 2027 through 2029, including a newly contracted $37 million Kamsarmax, which would expand its fleet from 11 to 16 vessels. Management said it prefers newbuilds to high-priced secondhand ships, though the latest vessel’s contract is conditional on an acceptable bank refund guarantee and will be funded with debt and equity.
- The company raised about $10.7 million by issuing shares at an average $67.54 and extended its $10 million repurchase program, positioning capital issuance and buybacks around share value, according to management. EuroDry reported $50 million in unrestricted cash; management estimated NAV at $66–$67 per share, while noting the shares were then trading near $39.
- Scheduled dry dockings for three vessels are expected to cost about $4 million, roughly split between the fourth quarter and first half of 2027, and could weigh on results in coming quarters. The company estimated its all-in cash flow breakeven for the next 12 months at around $13,000 per vessel per day.
EuroDry Stock Performance
NASDAQ EDRY traded up $1.29 during trading hours on Wednesday, reaching $40.09. 34,570 shares of the company were exchanged, compared to its average volume of 70,425. The stock has a market capitalization of $114.95 million, a P/E ratio of 12.11 and a beta of 0.82. The company has a quick ratio of 1.23, a current ratio of 1.28 and a debt-to-equity ratio of 0.69. EuroDry has a 1 year low of $12.30 and a 1 year high of $73.07. The business’s 50 day simple moving average is $52.14 and its 200-day simple moving average is $30.49.
Trending Headlines about EuroDry
Here are a few of the latest headlines about EDRY:
- Positive Sentiment: Analyst rating upgrade. Zacks Research raised its rating on EDRY from “hold” to “strong-buy,” adding a favorable sentiment signal. Zacks Research ratings
- Neutral Sentiment: Revenue comparisons are mixed. Revenue rose substantially year over year, but the $19.4 million result was below the $20.0 million estimate cited by MarketBeat. MarketBeat earnings report
- Negative Sentiment: Share issuance and cost pressures. EuroDry raised $10.7 million through its at-the-market program by issuing shares equal to about 5.4% of shares outstanding, creating dilution. Management also noted charter rates softened somewhat in October, while vessel supply costs rose. Company release
Analysts Set New Price Targets
Several research analysts recently weighed in on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of EuroDry in a report on Friday, August 21st. Zacks Research upgraded shares of EuroDry from a “hold” rating to a “strong-buy” rating in a research note on Monday. Finally, Alliance Global Partners reissued a “buy” rating on shares of EuroDry in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, EuroDry presently has an average rating of “Moderate Buy” and an average target price of $23.50.
Check Out Our Latest Stock Report on EuroDry
Insider Activity
In other news, Director Aristeidis Pittas sold 2,950 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $50.76, for a total transaction of $149,742.00. Following the completion of the sale, the director owned 33,020 shares in the company, valued at $1,676,095.20. This trade represents a 8.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Panagiotis Kyriakopoulos sold 2,067 shares of EuroDry stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $43.80, for a total transaction of $90,534.60. Following the completion of the sale, the director directly owned 8,400 shares in the company, valued at $367,920. This trade represents a 19.75% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders purchased 2,200 shares of company stock valued at $110,925 and sold 11,993 shares valued at $548,277.
About EuroDry
EuroDry Ltd. (NASDAQ: EDRY) is a dry bulk shipping company that owns and operates vessels used to transport a range of essential commodities. Its cargoes may include iron ore, grain, coal, steel products, forest products and other dry bulk materials. The company’s fleet has primarily consisted of smaller dry bulk vessels, including Handy-size and Supramax-class ships. These vessels serve international trade routes and are employed through time charters, voyage charters and other commercial arrangements, depending on market conditions and customer requirements.
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