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]

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Core Viewpoint - Ardmore Shipping (ASC) shares have shown a modest increase of 0.6% over the past four weeks, closing at $16.32, with analysts projecting a potential upside to a mean price target of $20.67, indicating a 26.7% increase from the current price [1] Price Targets and Analyst Consensus - The mean price target of $20.67 is derived from three short-term estimates, with a standard deviation of $1.15, suggesting a relatively high agreement among analysts [1] - The lowest estimate of $20 indicates a 22.6% increase, while the highest estimate suggests a 34.8% increase to $22 [1] - Analysts' ability to set price targets has been questioned, as they may set overly optimistic targets influenced by business relationships [3][4] Earnings Estimates and Potential Upside - There is a growing optimism among analysts regarding ASC's earnings prospects, supported by a positive trend in earnings estimate revisions [5] - The Zacks Consensus Estimate for the current year has risen by 2.5% over the past month, with one estimate increasing and no negative revisions [5] - ASC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [6]

Industry Overview - Tensions in the Middle East are escalating, impacting oil prices and creating investment opportunities in oil stocks [1] - OPEC+ production cuts and sanctions on major oil producers like Russia and Venezuela are expected to keep oil prices elevated [1] Plains All American Pipeline (PAA) - PAA is a master limited partnership involved in crude oil transportation in the U.S. and Canada, with activities including pipeline transport, marketing, and storage [2] - The stock has shown strong performance due to America's industrial boom and a shift towards reducing foreign oil dependence [2] - PAA has a forward P/E of 14 and a high dividend yield of 7%, with a total estimated CapEx for 2024 at $600 million and EBITDA of approximately $2.75 billion [3] Dynagas LNG Partners LP (DLNG) - DLNG specializes in transporting liquefied natural gas (LNG) globally, operating a fleet of six LNG carriers with a capacity nearing 1 million cubic meters [4][5] - The company has appreciated 25% year-to-date, trading at 2.7 times forward earnings, with potential for further upside due to steady profits and debt reduction [5] Ardmore Shipping Corporation (ASC) - ASC focuses on the seaborne transportation of refined oil products and chemicals, operating a fleet of 22 owned and four chartered vessels [6] - The company benefits from increased shipping expenses due to Middle East tensions, particularly in critical chokepoints [6] - Despite a 370% increase since 2022, ASC has a forward dividend yield of 5.7% and trades at only 5 times forward earnings, with strong margins of 29.5% [7]

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].

Ardmore Shipping (ASC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power o ...

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Has Ardmore Shipping (ASC) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.Ardmore Shipping is a member of the Transportation sector. This group includes 132 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 d ...