Fleet and Operations - As of September 30, 2024, Ardmore Shipping Corporation operated a fleet of 26 vessels, including 20 Medium Range (MR) tankers and 6 Eco-Design product/chemical tankers, totaling 973,181 deadweight tonnes (dwt) [14]. - The company reported a total of 26 vessels in operation as of September 30, 2024, employed with 17 different charterers, indicating a diversified client base [86]. - The average age of the company's owned fleet as of September 30, 2024, was 10.0 years [102]. - The company had 22 owned vessels and four chartered-in vessels in operation as of September 30, 2024 [102]. Financial Performance - Revenue for the three months ended September 30, 2024, was $96.1 million, an increase of $9.2 million (11%) from $86.9 million for the same period in 2023 [31]. - Net income for the three months ended September 30, 2024, was $24.1 million, an increase of $2.9 million (14%) from $21.2 million for the same period in 2023 [31]. - Revenue for the nine months ended September 30, 2024, was $323.7 million, an increase of $26.6 million (9%) from $297.1 million for the same period in 2023 [46]. - Net income for the nine months ended September 30, 2024, was $126.1 million, representing a 40.5% increase from $89.8 million in the same period of 2023 [95]. - Earnings per share (EPS) for the three months ended September 30, 2024, was $0.55, up from $0.49 in the same period of 2023, reflecting an increase of 12.2% [95]. Expenses and Costs - Voyage expenses for the three months ended September 30, 2024, were $34.6 million, an increase of $4.0 million (13%) from $30.6 million for the same period in 2023 [34]. - Total charter hire expenses for the three months ended September 30, 2024, were $5.9 million, an increase of $1.8 million (44%) from $4.1 million for the same period in 2023 [38]. - Depreciation expense for the three months ended September 30, 2024, was $7.8 million, an increase of $0.9 million (13%) from $6.9 million for the same period in 2023 [39]. - Vessel operating expenses rose to $45.1 million for the nine months ended September 30, 2024, an increase of $0.5 million from $44.6 million for the same period in 2023 [51]. - Total charter hire expenses increased to $16.9 million for the nine months ended September 30, 2024, up $3.0 million from $13.9 million for the same period in 2023 [52]. Dividends and Shareholder Returns - The Board of Directors declared a cash dividend of $0.18 per common share for the quarter ended September 30, 2024, to be paid on December 13, 2024 [22]. - The company maintains a variable dividend policy, paying out dividends equal to one-third of adjusted earnings [22]. - The company paid $37,517,000 in common share dividends during the nine months ended September 30, 2024, down from $40,546,000 in 2023 [100]. Strategic Initiatives - Ardmore Shipping Corporation's Energy Transition Plan aims to capitalize on regulations related to energy efficiency and emissions reduction in the shipping industry [17]. - The company is focused on enhancing earnings by exploiting overlaps between the clean petroleum product and chemical sectors [15]. - The company emphasizes competitive operating expenses and high-quality service through in-house chartering and commercial teams [18]. - The company is actively monitoring interest rate exposure and may enter into swap arrangements to hedge this exposure when deemed economically advantageous [82]. Market and Economic Conditions - The ongoing Russia-Ukraine war has significantly increased spot tanker rates due to disruptions in energy supply chains and economic sanctions [23]. - Geopolitical tensions from the Israel-Hamas war and attacks on vessels in the Red Sea have affected trading patterns and expenses for shipping companies [25]. Leadership and Governance - Ardmore Shipping Corporation's leadership transition occurred on September 16, 2024, with Gernot Ruppelt appointed as CEO and Bart Kelleher expanding his role to include President [21]. Cash Flow and Liquidity - Net cash provided by operating activities was $137.5 million for the nine months ended September 30, 2024, compared to $140.9 million for the same period in 2023 [72]. - Net cash used in investing activities was $29.9 million for the nine months ended September 30, 2024, compared to $18.6 million for the same period in 2023 [73]. - Net cash used in financing activities was $106.8 million for the nine months ended September 30, 2024, down from $122.0 million for the same period in 2023 [74]. - As of September 30, 2024, the company had $268.5 million in liquidity available, including cash and cash equivalents of $47.6 million [60]. Investments and Joint Ventures - The Company purchased a 10% equity stake in Element 1 Corp. for a total investment of $9.2 million, consisting of $4.0 million in cash and $5.3 million in common shares [111]. - The Company established a joint venture, e1 Marine LLC, with a 33.33% ownership stake, which aims to deliver hydrogen delivery systems to the marine sector [112]. - As of September 30, 2024, the Company recorded an investment of $9.0 million in Element 1 Corp., including transaction costs [113]. Debt and Financial Obligations - The Company's total debt as of September 30, 2024, was $22.5 million, a decrease from $46.8 million as of December 31, 2023 [115]. - The Company has a $185 million sustainability-linked revolving credit facility with Nordea and SEB, of which $20 million was drawn down as of September 30, 2024 [116]. - The ABN/CACIB Joint Bank Facility, totaling $108 million, was converted entirely into a revolving credit facility as of March 14, 2024, with $81.7 million undrawn [117]. - The Company repaid its remaining finance lease facility of $41 million associated with two vessels on June 25, 2024, eliminating all financial liabilities under this lease [121]. Stock and Equity Compensation - The Company recorded a total of 366,768 restricted stock units (RSUs) as of September 30, 2024, with a weighted average fair value of $13.73 [129]. - The total cost related to non-vested RSU awards expected to be recognized through 2027 is $3.55 million [130]. - Share-based compensation increased to $3,596,000 for the nine months ended September 30, 2024, from $2,401,000 in 2023 [100]. Compliance and Liabilities - The Company was in compliance with all long-term debt financial covenants as of September 30, 2024 [120]. - The Company recorded a liability of $1.0 million related to a profits interest granted to Maritime Partners, included in non-current liabilities as of September 30, 2024 [133].

Core Insights - Ardmore Shipping Corporation reported a net income of $23.3 million for Q3 2024, an increase from $20.3 million in Q3 2023, with earnings per share rising to $0.55 from $0.49 [2][17] - For the nine months ended September 30, 2024, net income reached $123.5 million, compared to $87.3 million for the same period in 2023, with earnings per share increasing to $2.96 from $2.12 [2][17] - The company declared a cash dividend of $0.18 per common share for Q3 2024, consistent with its variable dividend policy [2][12] Financial Performance - Revenue for Q3 2024 was $96.1 million, up from $86.9 million in Q3 2023, driven by increased spot rates and revenue days [18][19] - The average Time Charter Equivalent (TCE) rate for the fleet was $26,628 per day, an increase from $26,347 per day in Q3 2023 [22][45] - Voyage expenses increased to $34.6 million in Q3 2024 from $30.6 million in Q3 2023, primarily due to higher port and bunker costs [21][22] Fleet Operations - As of September 30, 2024, Ardmore operated 26 vessels, including 20 MR tankers and six Eco-Design IMO 2 product/chemical tankers [6][49] - The average TCE rate for MR Eco-Design tankers was $28,481 per day in Q3 2024, while chemical tankers earned an average TCE rate of $21,604 per day [3][9] - The company expects 95% of its MR tankers' revenue days to be employed in the spot market for Q4 2024, with fixed rates averaging approximately $23,100 per day [8][10] Leadership and Strategy - Gernot Ruppelt was appointed as the new CEO following the retirement of founder Anthony Gurnee [14] - The company focuses on maximizing TCE performance, managing costs, and reducing its breakeven level to enhance earnings capacity [5][6] - Ardmore's Energy Transition Plan aims to improve operational efficiency and reduce emissions through technological advancements [36][50] Market Conditions - Geopolitical factors, including the Russia-Ukraine conflict and tensions in the Middle East, have contributed to rising tanker charter rates [15][16] - The company is well-positioned to capture market upside as conditions improve with the onset of the winter season [4][6]

Core Viewpoint - Ardmore Shipping (ASC) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2024, with the actual results being crucial for the stock's near-term price movement [1][2]. Earnings Expectations - The consensus estimate for Ardmore Shipping's quarterly earnings is $0.53 per share, reflecting an 8.2% increase year-over-year [3]. - Expected revenues are projected at $60.77 million, which is a 7.9% increase from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 8.94%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced positive surprises nearly 70% of the time [8]. Historical Performance - In the last reported quarter, Ardmore Shipping exceeded the expected earnings of $1.08 per share by delivering $1.13, resulting in a surprise of +4.63% [11]. - The company has beaten consensus EPS estimates in all of the last four quarters [12]. Conclusion - Despite the potential for an earnings beat, Ardmore Shipping does not currently appear to be a compelling candidate for such an outcome, and investors should consider other factors before making investment decisions [15].

Group 1 - Ardmore Shipping Corporation plans to announce its third quarter earnings on November 6, 2024, before the market opens and will host a conference call at 10:00 a.m. Eastern Time [1] - The conference call will be available via live webcast and can also be accessed by phone for participants [1] - An audio replay of the call will be available until November 13, 2024, with specific access details provided [1] Group 2 - Ardmore operates a fleet of MR product and chemical tankers, with deadweight tonnage ranging from 25,000 to 50,000 [2] - The company focuses on seaborne transportation of petroleum products and chemicals to various clients, including oil majors and chemical companies [2] - Ardmore's core strategy includes developing a modern fleet, building long-term commercial relationships, and maintaining cost advantages [2] Group 3 - Ardmore's Energy Transition Plan (ETP) emphasizes transition technologies, projects, and sustainable non-fossil fuel cargos [3] - The ETP builds on Ardmore's strengths in tanker chartering, shipping operations, and fuel efficiency improvements [3]

Company Performance - Ardmore Shipping (ASC) closed at $16.23, reflecting a -1.96% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.05% [1] - The stock has decreased by 4.5% over the past month, underperforming the Transportation sector's gain of 0.67% and the S&P 500's gain of 2.76% [1] - Upcoming earnings report is anticipated to show earnings of $0.80 per share, representing a year-over-year growth of 63.27%, with revenue expected at $71.61 million, a 27.18% increase compared to the same quarter last year [1] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $3.47 per share and revenue at $297.37 million, indicating increases of +28.04% and +12.61% respectively from the previous year [2] - Recent revisions to analyst forecasts are important as they reflect changing business trends, with positive estimate revisions indicating optimism about the company's outlook [2] Valuation and Ranking - Ardmore Shipping has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the past month [3] - The company is currently trading at a Forward P/E ratio of 4.78, which is lower than the industry average Forward P/E of 7.64, indicating a discount compared to its peers [3] - The Transportation - Shipping industry holds a Zacks Industry Rank of 100, placing it in the top 40% of over 250 industries [3]

Core Insights - ZyVersa Therapeutics, Inc. has established a new Scientific Advisory Board (SAB) to support the development of its Inflammasome ASC Inhibitor IC 100, targeting obesity with metabolic complications [1][2] - IC 100 is expected to enhance weight loss and reduce chronic systemic inflammation associated with obesity, potentially addressing various inflammatory comorbidities [1] Company Overview - ZyVersa is a clinical stage specialty biopharmaceutical company focused on developing first-in-class drugs for inflammatory and renal diseases, with a significant market opportunity exceeding $100 billion [13] - The lead indication for IC 100 is obesity with metabolic complications, while another product, VAR 200, targets focal segmental glomerulosclerosis (FSGS) [13] Scientific Advisory Board Composition - The SAB includes five experts in obesity and metabolic diseases and four inflammasome specialists from the University of Miami Miller School of Medicine [1][2] - Notable members include: - Caroline M. Apovian, MD, Co-Director at Brigham and Women's Hospital [3] - Harold Bays, MD, Medical Director at Louisville Metabolic and Atherosclerosis Research Center [4] - Samuel Klein, MD, Director of the Center for Human Nutrition at Washington University [10] Mechanism of Action for IC 100 - IC 100 is a humanized IgG4 monoclonal antibody that inhibits the inflammasome adaptor protein ASC, designed to mitigate both the initiation and perpetuation of inflammatory responses [12] - It works by binding to ASC, preventing inflammasome formation and blocking the activation of IL-1β, which is crucial in the inflammatory cascade [12]

Core Viewpoint - Brokerage recommendations, particularly for Ardmore Shipping (ASC), show a strong average brokerage recommendation (ABR) of 1.33, indicating a consensus leaning towards buying the stock, but caution is advised as these recommendations may not always align with actual stock performance [1][2]. Brokerage Recommendation Trends for ASC - Ardmore Shipping has an ABR of 1.33, with five out of six recommendations classified as Strong Buy, representing 83.3% of total recommendations [1]. - Studies indicate that brokerage recommendations often lack success in guiding investors towards stocks with the highest price increase potential due to analysts' inherent biases [2]. - Brokerage firms tend to issue five "Strong Buy" recommendations for every "Strong Sell," suggesting a misalignment of interests between analysts and retail investors [2]. Zacks Rank vs. ABR - The Zacks Rank, a proprietary stock rating tool, is a reliable indicator of near-term price performance, contrasting with the ABR which is based solely on brokerage recommendations [3][4]. - Zacks Rank is based on earnings estimate revisions, which have shown a strong correlation with stock price movements, while ABR may not always be up-to-date [5][6]. Current Earnings Estimates for Ardmore Shipping - The Zacks Consensus Estimate for Ardmore Shipping remains unchanged at $3.47 for the current year, indicating steady analyst views on the company's earnings prospects [7]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Ardmore Shipping, suggesting a cautious approach despite the positive ABR [7].

Company Performance - Ardmore Shipping (ASC) closed at $18.10, reflecting a +0.78% change from the previous trading day's closing, outperforming the S&P 500 which gained 0.42% [1] - Over the past month, Ardmore Shipping shares have decreased by 4.87%, underperforming the Transportation sector's gain of 3.57% and the S&P 500's gain of 2.06% [1] - The upcoming earnings report is anticipated, with projected earnings per share (EPS) of $0.80, indicating a 63.27% increase year-over-year, and revenue projections of $71.61 million, up 27.18% from the previous year [1] Full Year Estimates - For the full year, analysts expect earnings of $3.47 per share and revenue of $297.37 million, representing increases of +28.04% and +12.61% respectively from last year [2] - Recent modifications to analyst estimates reflect short-term business trends, with positive revisions indicating analyst optimism regarding the company's profitability [2] Valuation and Ranking - Ardmore Shipping has a Forward P/E ratio of 5.18, compared to the industry average Forward P/E of 8.04, suggesting that the company is trading at a discount [3] - The Transportation - Shipping industry has a Zacks Industry Rank of 138, placing it in the bottom 46% of over 250 industries [3]

Core Viewpoint - Ardmore Shipping (ASC) has experienced a -3.6% return over the past month, underperforming the Zacks S&P 500 composite's +2.1% change, while the Zacks Transportation - Shipping industry has lost 0.7% during the same period [1] Earnings Estimate Revisions - The consensus earnings estimate for Ardmore Shipping is $0.80 per share for the current quarter, reflecting a year-over-year increase of +63.3% [3] - The consensus earnings estimate for the current fiscal year is $3.47, indicating a year-over-year change of +28%, which has remained unchanged over the last 30 days [3] - For the next fiscal year, the consensus estimate is $2.10, representing a decline of -39.3% compared to the previous year, with no changes in the estimate over the past month [3] Projected Revenue Growth - The consensus sales estimate for Ardmore Shipping is $71.61 million for the current quarter, showing a year-over-year increase of +27.2% [6] - The revenue estimates for the current and next fiscal years are $297.37 million and $221.99 million, indicating changes of +12.6% and -25.4%, respectively [6] Last Reported Results and Surprise History - In the last reported quarter, Ardmore Shipping achieved revenues of $86.61 million, a year-over-year increase of +43.4%, with an EPS of $1.13 compared to $0.57 a year ago [7] - The reported revenues exceeded the Zacks Consensus Estimate of $81.88 million by +5.77%, and the EPS surprise was +4.63% [7] - The company has consistently beaten consensus EPS and revenue estimates in the trailing four quarters [7] Valuation - Ardmore Shipping is graded A in the Zacks Value Style Score, indicating it is trading at a discount to its peers [9] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for determining whether the stock is overvalued, fairly valued, or undervalued [8] Conclusion - The Zacks Rank 3 suggests that Ardmore Shipping may perform in line with the broader market in the near term, despite the market buzz surrounding the company [10]

Core Viewpoint - Ardmore Shipping (ASC) has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy based on six brokerage firms' recommendations, all of which are Strong Buy [1][2] Brokerage Recommendation Trends - The ABR suggests buying Ardmore Shipping, but relying solely on this information may not be advisable as studies indicate brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation [2][3] - Brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [2][3] Zacks Rank vs. ABR - Zacks Rank is a proprietary stock rating tool that categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [3][5] - The ABR is calculated solely from brokerage recommendations and may not be up-to-date, while Zacks Rank reflects timely earnings estimate revisions [4][6] Investment Considerations for ASC - The Zacks Consensus Estimate for Ardmore Shipping remains unchanged at $3.47 for the current year, indicating steady analyst views on earnings prospects [7] - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Ardmore Shipping, suggesting caution despite the Buy-equivalent ABR [7]