Torm (NASDAQ:TRMD – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $1.91 EPS for the quarter, topping analysts’ consensus estimates of $1.55 by $0.36, Zacks reports. Torm had a return on equity of 31.88% and a net margin of 38.94%. The business had revenue of $499.40 million for the quarter, compared to analysts’ expectations of $330.95 million.
Here are the key takeaways from Torm’s conference call:
- Q3 earnings rose substantially year over year: TCE earnings were $353 million, EBITDA was $274 million and net profit was $199 million. Average fleet TCE was about $40,100 per day, though earnings were lower than in the exceptional second quarter.
- TORM raised the low end of its full-year guidance by $50 million: It now expects TCE earnings of $1.75 billion–$1.9 billion and EBITDA of $1.35 billion–$1.5 billion, citing strong Q4 coverage and market expectations.
- Management sees supportive tanker-market fundamentals: Q4 bookings included rates of about $78,000 per day across vessel classes, while the company said the fleet actively trading clean products had contracted roughly 4% year to date despite growth in the nominal fleet. It also pointed to potential demand from inventory rebuilding.
- Shareholders will receive a $1.35-per-share interim dividend, totaling $138 million, at a 78% payout ratio. TORM reported a 25.9% net loan-to-value ratio, which management said already includes committed newbuilding investments.
- Fleet investment commitments are substantial: The company cited about $650 million of committed newbuilding CapEx and plans for additional MR and LR2 vessels. Management also emphasized that shipping is cyclical and freight-market conditions can change quickly.
Torm Trading Up 0.6%
TRMD traded up $0.19 during midday trading on Friday, reaching $34.50. 500,704 shares of the company’s stock traded hands, compared to its average volume of 1,039,678. The firm has a fifty day moving average of $37.42 and a two-hundred day moving average of $30.88. The stock has a market capitalization of $3.52 billion, a price-to-earnings ratio of 4.77 and a beta of 0.05. The company has a debt-to-equity ratio of 0.33, a current ratio of 2.27 and a quick ratio of 1.97. Torm has a 52 week low of $19.30 and a 52 week high of $43.31.
Torm Cuts Dividend
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 2nd. Shareholders of record on Tuesday, November 17th will be given a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a yield of 15.7%. The ex-dividend date of this dividend is Tuesday, November 17th. This is a negative change from Torm’s previous quarterly dividend of $2.40. Torm’s dividend payout ratio is currently 97.23%.
Insider Buying and Selling at Torm
In other news, CFO Kim Balle sold 7,533 shares of Torm stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $36.35, for a total value of $273,824.55. Following the sale, the chief financial officer directly owned 510 shares in the company, valued at approximately $18,538.50. This trade represents a 93.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last 90 days, insiders sold 42,533 shares of company stock valued at $1,643,225. 0.37% of the stock is currently owned by company insiders.
Analyst Ratings Changes
Several research analysts have recently issued reports on TRMD shares. Wall Street Zen upgraded shares of Torm from a “buy” rating to a “strong-buy” rating in a report on Saturday, September 19th. Weiss Ratings upgraded shares of Torm from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday. Finally, Evercore reiterated an “outperform” rating on shares of Torm in a report on Tuesday, October 27th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $38.00.
Read Our Latest Analysis on TRMD
About Torm
TORM plc is a maritime transportation company that owns and operates a fleet of product tankers. The company primarily transports refined petroleum products, including gasoline, diesel, jet fuel and naphtha, connecting refineries, storage facilities and distribution markets around the world.
TORM’s fleet serves the global clean-product tanker market and includes vessels in several size categories, such as long-range and medium-range tankers. Its vessels operate on international trade routes, supporting the movement of energy products between major production and consumption regions.
Founded in Denmark in 1889, TORM has grown into an international shipping company headquartered in Copenhagen.
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