EuroDry (NASDAQ:EDRY) Issues Quarterly Earnings Results

EuroDry (NASDAQ:EDRY) posted its quarterly earnings results on Thursday. The company reported $2.44 EPS for the quarter, topping the consensus estimate of $1.23 by $1.21, Zacks reports. The business had revenue of $17.70 million during the quarter, compared to the consensus estimate of $17.86 million. EuroDry had a net margin of 15.02% and a return on equity of 8.94%.

Here are the key takeaways from EuroDry’s conference call:

• Positive Sentiment: EuroDry reported a sharp year-over-year improvement in Q2 results, with revenue up 57% to $17.7 million, adjusted EBITDA increasing more than fivefold to $11.7 million, and adjusted net income of $6.95 million, or $2.44 per diluted share.
• Positive Sentiment: Fleet utilization reached 100% in the quarter, while average time charter equivalent rates more than doubled to $20,398 per vessel per day; operating expenses remained well controlled and the cash-flow breakeven rate declined year over year.
• Positive Sentiment: The company signed a term sheet to refinance the MV Ekaterini with a $19 million facility, nearly $8 million above the existing balance, which should improve liquidity. Management also extended its share-repurchase authorization and said it would continue buying shares selectively.
• Positive Sentiment: EuroDry is pursuing fleet renewal through four newbuildings scheduled for delivery in 2027–2028, favoring newer, more fuel-efficient vessels over expensive secondhand tonnage; management estimates fleet market value at roughly $240 million versus $160 million in book value.
• Negative Sentiment: Management expects a more balanced and uncertain dry-bulk market in 2027 as fleet growth continues, while demand could be affected by Chinese steel production, coal trade, tariffs, geopolitical developments, and normalization of Middle East shipping flows.

EuroDry Stock Up 16.4%

Shares of EDRY traded up $4.90 during mid-day trading on Friday, reaching $34.72. The company’s stock had a trading volume of 131,081 shares, compared to its average volume of 104,655. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.61 and a quick ratio of 1.55. EuroDry has a 12-month low of $10.02 and a 12-month high of $34.80. The stock has a market cap of $100.34 million, a PE ratio of 10.49 and a beta of 0.68. The company’s 50 day moving average is $23.60 and its 200 day moving average is $20.56.

Analysts Set New Price Targets

Several analysts have recently issued reports on EDRY shares. Alliance Global Partners reiterated a “buy” rating on shares of EuroDry in a research note on Friday. Zacks Research upgraded EuroDry from a “hold” rating to a “strong-buy” rating in a report on Friday, July 10th. Wall Street Zen raised EuroDry from a “buy” rating to a “strong-buy” rating in a research report on Sunday, May 3rd. Finally, Weiss Ratings cut EuroDry from a “sell (d+)” rating to a “sell (d-)” rating in a research note on Tuesday, May 26th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, EuroDry presently has an average rating of “Moderate Buy” and an average price target of $23.50.

About EuroDry

EuroDry Limited is a Marshall Islands–incorporated shipping company, formed in 2005 and headquartered in Piraeus, Greece. The company is publicly traded on the NASDAQ under the symbol EDRY. Since its inception, EuroDry has focused exclusively on the marine transportation of drybulk commodities and has grown its fleet through a combination of newbuilding contracts and second-hand acquisitions.

As of mid-2024, EuroDry’s operating fleet comprises Capesize, Panamax and Supramax drybulk carriers, collectively providing over one million deadweight tons (dwt) of capacity.