Ardmore Shipping (NYSE:ASC) Issues Earnings Results, Beats Expectations By $0.01 EPS

Ardmore Shipping (NYSE:ASC) announced its quarterly earnings results on Tuesday. The shipping company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.39 by $0.01, FiscalAI reports. Ardmore Shipping had a net margin of 29.67% and a return on equity of 15.24%. The firm had revenue of $87.71 million for the quarter, compared to the consensus estimate of $56.67 million.

Here are the key takeaways from Ardmore Shipping’s conference call:

• Strong earnings and rising tanker rates: Third-quarter adjusted earnings were $16.3 million, or $0.40 per share, while MR tanker TCE rose to $57,600 per day in the fourth quarter to date, with recent bookings above $80,000 per day.
• Favorable product-tanker demand outlook: Refining margins, inventory rebuilding needs, geopolitical trade disruptions, and longer voyage distances are expected to support product-tanker utilization and demand into 2027.
• Supportive fleet supply dynamics: The MR order book is 18% of the fleet, while the Handysize order book is only 6%; substantial portions of both fleets will exceed 20 years of age within five years, potentially reducing effective supply.
• Capital returns and fleet renewal continue: Ardmore declared a $0.27-per-share dividend, its 16th consecutive quarterly dividend, while maintaining six Handysize newbuildings scheduled for delivery beginning in 2028 and reporting 32% effective leverage.
• Management said it will remain opportunistic about asset sales, acquisitions, newbuildings, share repurchases, and chartering in tonnage, but currently has no vessels on time charter-in and is prioritizing flexibility while monitoring the winter market.

Ardmore Shipping Price Performance

ASC traded down $1.01 during midday trading on Wednesday, hitting $18.22. 312,509 shares of the company traded hands, compared to its average volume of 678,600. The business has a 50 day simple moving average of $18.84 and a two-hundred day simple moving average of $16.61. Ardmore Shipping has a 52-week low of $10.31 and a 52-week high of $21.34. The company has a market capitalization of $742.18 million, a price-to-earnings ratio of 7.03 and a beta of 0.15. The company has a current ratio of 5.45, a quick ratio of 4.84 and a debt-to-equity ratio of 0.05.

Ardmore Shipping Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Friday, November 27th will be issued a dividend of $0.27 per share. The ex-dividend date of this dividend is Friday, November 27th. This is a negative change from Ardmore Shipping’s previous quarterly dividend of $0.79. This represents a $1.08 annualized dividend and a yield of 5.9%. Ardmore Shipping’s payout ratio is 122.01%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ASC. Weiss Ratings upgraded shares of Ardmore Shipping from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, September 22nd. Evercore restated an “outperform” rating and set a $22.00 target price on shares of Ardmore Shipping in a research report on Tuesday, October 27th. Finally, Wall Street Zen lowered Ardmore Shipping from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Three equities research analysts have rated the stock with a Buy rating. According to MarketBeat, the company has an average rating of “Buy” and a consensus target price of $18.50.

Trending Headlines about Ardmore Shipping

Here are the key news stories impacting Ardmore Shipping this week:

• Positive Sentiment: Third-quarter net income rose to $16.3 million, or $0.40 per share, from $12.1 million, or $0.30 per share, a year earlier. Revenue of $87.71 million substantially exceeded analyst estimates of $56.67 million, while EPS narrowly beat the $0.39 consensus. Ardmore Shipping Q3 financial results
• Positive Sentiment: A report highlighted that fourth-quarter MR tanker rates had doubled, a potentially supportive signal for near-term earnings if stronger rates persist. Ardmore Shipping Q3 earnings and Q4 MR rates
• Negative Sentiment: Ardmore declared a quarterly dividend of $0.27 per share, down 65.8% from the prior $0.79 payment. The reduced payout could disappoint income-focused shareholders, despite an indicated annualized yield of about 5.6%.

Ardmore Shipping Company Profile

Ardmore Shipping Corporation (NYSE: ASC) is a maritime transportation company that owns and operates a fleet of product and chemical tankers. The company provides seaborne transportation services for refined petroleum products, such as gasoline, diesel and jet fuel, as well as certain chemicals and other liquid cargoes.

Ardmore’s vessels primarily serve international trade routes, transporting cargoes between major energy and industrial markets. Its operations include commercial management, chartering and technical management of its fleet, with an emphasis on safe, efficient and environmentally responsible maritime transportation.

Founded in 2010, Ardmore Shipping is headquartered in Hamilton, Bermuda.