Group 1 - Ardmore Shipping (ASC) provides seaborne transportation of petroleum products and chemicals worldwide, with a Zacks Consensus Estimate for current year earnings increasing by 14.2% over the last 60 days [1] - Ardmore Shipping has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 4.1%, compared to the industry average of 2.3% [1] - Kubota (KUBTY) is the world's largest maker of small tractors and Japan's second largest manufacturer of farm equipment, with a Zacks Consensus Estimate for current year earnings increasing nearly 5.9% over the last 60 days [1] Group 2 - LCI Industries (LCII) supplies components to the recreational vehicle and manufactured housing industries, with a Zacks Consensus Estimate for current year earnings increasing nearly 0.9% over the last 60 days [2] - LCI Industries has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 3.7%, compared to the industry average of 0.0% [2]

Have you been paying attention to shares of Ardmore Shipping (ASC) ? Shares have been on the move with the stock up 30.1% over the past month. The stock hit a new 52-week high of $20.52 in the previous session. Ardmore Shipping has gained 44.4% since the start of the year compared to the 0% move for the Zacks Transportation sector and the 13.8% return for the Zacks Transportation - Shipping industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't m ...

Financial Data and Key Metrics - Q1 2024 adjusted earnings were $38 million or $0.92 per share, reflecting robust market conditions [6] - MR tankers earned $38,400 per day in Q1 and $40,500 per day in Q2 with 60% booked [6] - Chemical tankers earned $29,100 per day in Q1 and $39,000 per day in Q2 with 60% booked [6] - Declared a quarterly cash dividend of $0.31 per share, consistent with the policy of paying out one-third of adjusted earnings [7] - Total dividends paid since Q4 2022 amount to $70 million, representing 10% of market cap [10] - Q1 EBITDAR was strong, with full reconciliation provided in the appendix [18] - Total CapEx for 2024 is anticipated to be $17 million, including $11 million for scrubber installations and efficiency upgrades [19] Business Line Performance - MR tankers showed strong performance, with TCE rates increasing sequentially [6] - Chemical tankers also performed well, with rates increasing significantly in Q2 [6] - The company completed the sale of the 2010-built Ardmore Seafarer and acquired the 2017-built Ardmore Gibraltar, which has better fuel efficiency and cargo flexibility [11] - Over 50% of the MR fleet is now outfitted with second-generation carbon capture-ready scrubbers [19] Market Data and Key Metrics - Geopolitical events and disruptions, such as the EU refined products embargo and Red Sea routing changes, are driving higher ton-mile demand [8] - Panama Canal congestion remains 20% below prior year levels, further contributing to ton-mile demand [9] - Global refinery runs are projected to increase by 5% in 2024 to 85 million barrels per day, driven by activity in Asia and the Middle East [9] - The MR order book is at 9% of the existing fleet, with the fleet aging rapidly and close to half of the MR fleet expected to surpass the 20-year age mark in the next 5 years [13][15] Company Strategy and Industry Competition - The company continues to execute its capital allocation policy, focusing on dividends, fleet modernization, and reducing carbon emissions [7][10] - Investments in fleet upgrades and scrubber installations are aimed at improving performance and reducing emissions [19] - The company is focused on reducing cash breakeven levels, with a target of below $11,500 per day, achieved through cost control, debt reduction, and fleet optimization [17][33] - The company is also investing in energy transition projects, including a $10 million investment in E1 Marine, which focuses on hydrogen production technology [40] Management Commentary on Operating Environment and Future Outlook - The near-term outlook remains positive, supported by strong supply/demand fundamentals and geopolitical events [8] - The company expects continued strength in the product and chemical tankers market, driven by long-term demand drivers such as refinery dislocation and increasing oil consumption [16] - Management highlighted the importance of maintaining a strong balance sheet and optimizing performance to capture market opportunities [17][21] Other Important Information - The company has largely completed its scheduled drydockings and upgrades for the year, which will increase revenue days and enhance earnings power [7][19] - The company has significant operating leverage, with every $10,000 per day increase in TCE rates leading to an approximate $2.30 annual increase in EPS and nearly $100 million in free cash flow generation [20] Q&A Session Summary Question: What is driving the strong performance in the chemical tanker market? - The strong performance is attributed to good chartering practices and favorable market conditions [25] Question: What is the plan for financing the purchase of the two leased vessels? - The company plans to draw on its revolving credit facilities for the $41 million outlay [27] Question: How does the company view capital allocation given its strong balance sheet? - The company remains focused on debt reduction, fleet investment, and returning capital to shareholders when appropriate [29] Question: What initiatives are driving the path to a $11,500 cash breakeven? - The company is pursuing multiple initiatives, including sale and leasebacks, cost reductions, and further debt reduction [33] Question: What is the status of the investment in E1 Marine? - E1 Marine is expanding its global scale through licensing agreements across various industries, with significant momentum in licensing revenue [40]

Company Performance - Ardmore Shipping (ASC) has gained approximately 18.4% year-to-date, outperforming the average loss of 3.4% in the Transportation sector [2][3] - The Zacks Consensus Estimate for ASC's full-year earnings has increased by 11.7% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [2] - Ardmore Shipping holds a Zacks Rank of 2 (Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [1][2] Industry Comparison - Ardmore Shipping is part of the Transportation - Shipping industry, which has seen an average gain of 6.1% this year, indicating that ASC is performing better than its industry peers [3] - In contrast, Cathay Pacific Airways Ltd. operates within the Transportation - Airline industry, which has a lower ranking (93) and has gained 14.5% since the beginning of the year [3] - The Transportation group as a whole is ranked 11 within the Zacks Sector Rank, reflecting the relative strength of the sector [1]

Core Viewpoint - Ardmore Shipping (ASC) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected on May 8 [1][2]. Earnings Estimates - The consensus estimate for Ardmore Shipping's quarterly earnings is $0.87 per share, reflecting a year-over-year decrease of 16.4% [2]. - Expected revenues for the quarter are $73.58 million, which is a decline of 9.9% compared to the same quarter last year [2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 3.28% higher, indicating a reassessment by covering analysts [2]. - The Most Accurate Estimate for Ardmore Shipping matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with significant predictive power for positive readings only [3][4]. - Ardmore Shipping currently holds a Zacks Rank of 2 (Buy), but the combination of a 0% Earnings ESP makes it challenging to predict an earnings beat [5][6]. Historical Performance - In the last reported quarter, Ardmore Shipping was expected to post earnings of $0.59 per share but exceeded expectations with earnings of $0.63, resulting in a surprise of +6.78% [7]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [7]. Conclusion - While Ardmore Shipping does not appear to be a compelling earnings-beat candidate, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [8].

Core Viewpoint - Ardmore Shipping's stock has shown resilience with a recent increase of 1.62%, outperforming major indices like the S&P 500 and Dow [1] - The upcoming earnings report is anticipated to reveal a decline in earnings per share (EPS) and revenue compared to the previous year [1][2] Group 1: Recent Performance - Ardmore Shipping closed at $16.89, with a monthly gain of 1.22%, while the Transportation sector declined by 7.09% [1] - The stock's performance exceeded the S&P 500's daily gain of 1.02% and the Dow's increase of 0.4% [1] Group 2: Earnings Expectations - The earnings report scheduled for May 8, 2024, is expected to show an EPS of $0.87, down 16.35% year-over-year [1] - Revenue projections are set at $73.58 million, reflecting a decrease of 9.91% from the previous year [1] Group 3: Annual Estimates - For the annual period, the Zacks Consensus Estimates predict an EPS of $2.72 and revenue of $251.87 million, indicating a slight increase in EPS (+0.37%) but a revenue decline (-4.62%) compared to last year [2] Group 4: Analyst Sentiment - Recent adjustments to analyst estimates suggest a positive outlook for Ardmore Shipping, with upward revisions indicating confidence in the company's profitability [2] - The Zacks Rank system, which incorporates these estimate changes, currently rates Ardmore Shipping as 2 (Buy) [3] Group 5: Valuation Metrics - Ardmore Shipping's Forward P/E ratio stands at 6.11, which is lower than the industry average of 7.59, indicating a potential undervaluation [3] - The Transportation - Shipping industry ranks in the top 20% of over 250 industries according to the Zacks Industry Rank [3]

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

Shares of Ardmore Shipping (ASC) have gained 0.6% over the past four weeks to close the last trading session at $16.32, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $20.67 indicates a potential upside of 26.7%.The mean estimate comprises three short-term price targets with a standard deviation of $1.15. While the lowest estimate of $20 indicates a 22.6% increase from the curr ...

If you’ve been keeping up with the news lately, you know tensions in the Middle East have been escalating significantly. While they’ve calmed down for the moment, as long as conflict continues raging in the region, it’s only a matter of time before the next major flare-up. Moreover, production cuts from OPEC+ and sanctions on major oil producers like Russia can only mean oil will keep trading at elevated prices in the future. Venezuela also got slapped with sanctions recently, so oil stocks are a great inve ...

Core Viewpoint - Ardmore Shipping (ASC) is well-positioned to continue its earnings-beat streak in upcoming reports, supported by a strong history of exceeding earnings estimates and positive earnings expectations [1][2]. Group 1: Earnings Performance - Ardmore Shipping has an average surprise of 10.37% over the past two quarters, indicating a consistent ability to outperform earnings estimates [1]. - In the last reported quarter, the company achieved earnings of $0.63 per share, surpassing the Zacks Consensus Estimate of $0.59 per share by 6.78% [1]. - For the previous quarter, Ardmore Shipping's earnings were $0.49 per share against an expected $0.43 per share, resulting in a surprise of 13.95% [1]. Group 2: Earnings Estimates and Predictions - Estimates for Ardmore Shipping have been trending higher, influenced by its history of earnings surprises [2]. - The company currently has a positive Zacks Earnings ESP of +1.21%, indicating increased analyst optimism regarding its near-term earnings potential [3]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat [3]. Group 3: Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [3]. - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [3]. - It is crucial for investors to check a company's Earnings ESP prior to quarterly releases to enhance the chances of successful investment decisions [4].