EuroDry (NASDAQ:EDRY) Issues Quarterly Earnings Results

EuroDry (NASDAQ:EDRY) issued its earnings results on Wednesday. The company reported $2.32 earnings per share for the quarter, beating analysts’ consensus estimates of $2.10 by $0.22, FiscalAI reports. EuroDry had a return on equity of 8.77% and a net margin of 15.02%. The firm had revenue of $19.41 million for 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 Trading Up 3.3%

EDRY stock traded up $1.29 during mid-day trading on Wednesday, reaching $40.09. The company’s stock had a trading volume of 34,570 shares, compared to its average volume of 70,425. The company has a market cap of $114.95 million, a price-to-earnings ratio of 12.11 and a beta of 0.82. The business’s 50 day moving average price is $52.14 and its 200 day moving average price is $30.49. The company has a current ratio of 1.28, a quick ratio of 1.23 and a debt-to-equity ratio of 0.69. EuroDry has a 12 month low of $12.30 and a 12 month high of $73.07.

Wall Street Analyst Weigh In

EDRY has been the subject of several research reports. Alliance Global Partners reissued a “buy” rating on shares of EuroDry in a research note on Friday, August 7th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of EuroDry in a research note on Friday, August 21st. Finally, Zacks Research upgraded shares of EuroDry from a “hold” rating to a “strong-buy” rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $23.50.

Insiders Place Their Bets

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 of the company’s stock, valued at $1,676,095.20. This trade represents a 8.20% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Panagiotis Kyriakopoulos sold 2,067 shares of the business’s stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $43.80, for a total value of $90,534.60. Following the completion of the sale, the director directly owned 8,400 shares of the company’s stock, valued at $367,920. The trade was a 19.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have acquired 2,200 shares of company stock worth $110,925 and have sold 11,993 shares worth $548,277.

Top EuroDry Stories

Here are a few of the latest stories about EDRY:

• Positive Sentiment: Q3 earnings improved sharply and beat estimates. EuroDry reported $19.4 million in net revenue, up 34.9% year over year, and $6.9 million in income attributable to controlling shareholders, versus a loss a year earlier. Adjusted diluted EPS was $2.32, above estimates cited by analysts. Stronger charter rates drove results: the average time charter equivalent rate rose 55.3% to $20,551 per day. EuroDry Q3 results
• Positive Sentiment: Fleet growth and liquidity. EuroDry has five newbuildings in its pipeline, including a newly contracted Kamsarmax carrier costing about $37 million, scheduled for delivery in 2029. The company reported more than $50 million in cash, net of restricted cash, to help fund its expansion. Results, newbuilding and share issuance
• 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

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.