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

Ardmore Shipping (NYSE:ASC) announced its quarterly earnings data on Tuesday. The shipping company reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates of $0.39 by $0.01, FiscalAI reports. Ardmore Shipping had a net margin of 30.11% and a return on equity of 15.51%. The company had revenue of $87.71 million during the quarter, compared to analyst estimates 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 Trading Down 4.2%

NYSE:ASC opened at $18.43 on Thursday. 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 has a 12 month low of $10.31 and a 12 month high of $21.34. The company has a market cap of $750.55 million, a PE ratio of 6.85 and a beta of 0.15. The company has a 50 day simple moving average of $18.85 and a two-hundred day simple moving average of $16.65.

Ardmore Shipping Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Friday, November 27th will be issued a $0.27 dividend. This is a decrease from Ardmore Shipping’s previous quarterly dividend of $0.79. This represents a $1.08 annualized dividend and a yield of 5.9%. The ex-dividend date is Friday, November 27th. Ardmore Shipping’s dividend payout ratio is 40.15%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on ASC shares. Weiss Ratings upgraded Ardmore Shipping from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, September 22nd. Wall Street Zen downgraded Ardmore Shipping from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 31st. Finally, Evercore reaffirmed an “outperform” rating and set a $22.00 price objective on shares of Ardmore Shipping in a research report on Tuesday, October 27th. Two equities research analysts have rated the stock with a Buy rating. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $22.00.

More Ardmore Shipping News

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 and $0.30 per share a year earlier. EPS slightly exceeded consensus, while revenue of $87.71 million was well above the $56.67 million estimate. Ardmore Shipping Q3 results
• Positive Sentiment: A report highlighted that fourth-quarter MR tanker rates had doubled, a potentially supportive sign for near-term earnings if stronger rates persist. Ardmore Shipping Q3: Revenue Beats as Q4 MR Rates Double
• Negative Sentiment: Ardmore cut its quarterly dividend to $0.27 per share from $0.79—a 65.8% reduction. Although the new dividend implies an annualized yield of about 5.6%, the steep cut may disappoint income-focused shareholders and help explain the stock’s decline.

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.