Movers and SHAKERS
EuroDry Ltd. (EDRY)
A Solid Quarter - Looking Ahead to 2021
EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands and trades on the NASDAQ Capital Market under the ticker EDRY. EDRY is the product of a spin-off of the dry bulk fleet by Euroseas (ESEA) completed in May 2018. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Adjusted 3Q2020 EBITDA stronger than expected due to higher TCE rates. 3Q2020 EBITDA of $2.8 million improved from 2Q2020 EBITDA of $0.2 million in 2Q2002 as TCE rates jumped to $11,873/day from $7,297/day in 2Q2020. Versus expectations, TCE revenue of $7.6 million was well above expectations by $1.9 million, as TCE rates tied to indices were higher than expected. The fleet of 7.0 vessels did not change and ownership days were 644, while TCE rates jumped to $11,873/day from $7,297/day in 2Q2020.
Fine-tuning 2020 estimate to incorporate 3Q2020 operating results and current dry bulk market conditions. We are moving our adjusted 2020 EBITDA estimate to $5.7 million based on TCE rates of $9,100/day, up from $5.4 million based on TCE rates of $8,724/day. While TCE rates were higher than expected in 3Q2020, we are forecasting that TCE rates fall back slightly in 4Q2020 ...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.