EuroDry Ltd. (EDRY) Misses Q3 EPS by 16c

EuroDry Ltd. (NASDAQ: EDRY) reported Q3 EPS of ($0.26), $0.16 worse than the analyst estimate of ($0.10). Revenue for the quarter came in at $7.7 million versus the consensus estimate of $7.98 million.

• Third Quarter 2019 Highlights:
• Total net revenues of $7.7 million. Net loss of $0.4 million; net loss attributable to common shareholders (after a $0.4 million dividend on Series B Preferred Shares) of $0.8 million or $0.35 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $0.6 million or $0.26 adjusted loss per share basic and diluted.
• Adjusted EBITDA1 was $2.2 million.
• An average of 7.0 vessels were owned and operated during the third quarter of 2019 earning an average time charter equivalent rate of $12,088 per day.
• The Company declared its third cash dividend of $0.4 million on its Series B Preferred Shares.

Aristides Pittas, Chairman and CEO of EuroDry commented: “During the third quarter of 2019, EuroDry benefited from the stronger drybulk market as the earnings of several of its ships were based on renewed charters or linked to market indices. However, given the small size of our fleet, our net income is influenced by any vessel drydocking expense that occurs during the quarter as the latter is expensed like it happened in the past quarter. In the fourth quarter of this year, we do not have any drydocking scheduled and that would mean that “barring any unforeseen circumstances,” it should be a profitable quarter.

We expect that the drybulk market supply and demand balance will be shaped by the limited supply growth expected over the next couple of years due to one of the lowest orderbook levels, especially for the segments we operate, and potential further vessel availability squeeze due to the implementation of the emissions and ballast water treatment regulations. We hope that this will translate to higher earnings for our ships, despite the drop of the market rates during October and November. We expect that trade developments will directly influence the rates with any reduction of the uncertainty relating to trade wars being a positive factor amongst others and any overall economic slowdown being a negative one.

We remain committed to grow our fleet either through single vessel acquisitions or by exploiting our public platform to consolidate other fleets. As EuroDry’s stock continues to trade at a significant discount to its NAV, we believe it represents a significant opportunity for investing in the drybulk market as in addition to any potential overall market recovery, the possible shrinkage of the discount to NAV could offer additional returns to our investors.”

For earnings history and earnings-related data on EuroDry Ltd. (EDRY) click here.

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