Company Performance - EuroDry reported a quarterly loss of $1.42 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.70, and compared to a loss of $0.24 per share a year ago, indicating an earnings surprise of -102.86% [1] - The company posted revenues of $14.71 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 11.22%, while year-ago revenues were $10.01 million [2] - Over the last four quarters, EuroDry has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - EuroDry shares have declined approximately 20.7% since the beginning of the year, contrasting with the S&P 500's gain of 23.6% [4] - The current Zacks Rank for EuroDry is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $18.86 million, and for the current fiscal year, it is -$0.85 on revenues of $67.3 million [8] - The trend of estimate revisions for EuroDry is mixed, which could change following the recent earnings report [7] Industry Context - The Transportation - Shipping industry, to which EuroDry belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [9]

Core Insights - EuroDry Ltd. reported a total net revenue of $14.7 million for Q3 2024, a 47% increase from $10.0 million in Q3 2023, primarily due to an increase in the average number of vessels and higher charter rates [2][13]. - The company experienced a net loss attributable to controlling shareholders of $4.2 million, or $1.53 loss per share, compared to a net loss of $0.5 million in the same period last year [2][22]. - Adjusted EBITDA for Q3 2024 was $0.5 million, down from $3.1 million in Q3 2023, reflecting the impact of market weakness and drydocking costs [3][12]. Financial Performance - For the first nine months of 2024, total net revenues reached $46.6 million, a 47% increase from $31.7 million in the same period of 2023 [5][25]. - The net loss attributable to controlling shareholders for the nine-month period was $6.4 million, or $2.34 loss per share, compared to a loss of $3.3 million in the first nine months of 2023 [5][35]. - Adjusted EBITDA for the first nine months of 2024 was $7.6 million, slightly down from $8.0 million in the same period of 2023 [6][36]. Operational Highlights - The average number of vessels owned and operated during Q3 2024 was 13.0, compared to 10.0 in Q3 2023, with an average time charter equivalent rate of $13,105 per day [3][41]. - Vessel operating expenses increased to $6.3 million in Q3 2024 from $4.7 million in Q3 2023, attributed to the higher number of vessels [15][27]. - The company completed drydocking for four vessels at a total cost of $4.5 million in Q3 2024, compared to $0.8 million for one vessel in Q3 2023 [19][31]. Market Conditions - The average earnings for Kamsarmax/Panamax and Ultramax vessels declined during Q3 2024, with continued weakness noted into October and November [8]. - Demand for vessels weakened in the second half of 2024, influenced by factors such as reduced throughput in the Panama Canal and decreased demand from China [8][9]. - The company is exploring investment opportunities in secondhand or newbuilding projects, leveraging recent market declines that have resulted in lower vessel values [11]. Recent Developments - EuroDry refinanced two loans involving four vessels, drawing approximately $16 million, which increased cash reserves and extended loan maturities to 2029 and 2030 [4]. - The company has repurchased approximately $5.0 million worth of shares under its $10 million share repurchase plan initiated in August 2022 [3].

Core Viewpoint - EuroDry (EDRY) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended September 2024, with actual results being a significant factor influencing its near-term stock price [1][3]. Earnings Expectations - The consensus estimate predicts a quarterly loss of $0.70 per share, reflecting a year-over-year change of -191.7%, while revenues are expected to reach $16.57 million, marking a 65.5% increase from the previous year [3]. - The consensus EPS estimate has been revised down by 4% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10]. - The stock holds a Zacks Rank of 3, complicating predictions of an earnings beat [10]. Historical Performance - In the last reported quarter, EuroDry was expected to post earnings of $0.58 per share but instead reported a loss of $0.17, resulting in a surprise of -129.31% [11]. - Over the past four quarters, EuroDry has beaten consensus EPS estimates twice [12]. Industry Comparison - Danaos (DAC), another player in the Zacks Transportation - Shipping industry, is expected to report earnings of $6.86 per share for the same quarter, indicating a year-over-year decline of -5.5%, with revenues projected at $251.16 million, up 5% from the previous year [16]. - Danaos' consensus EPS estimate has been revised down by 2.3% over the last 30 days, resulting in an Earnings ESP of 0.00% and a Zacks Rank of 4, indicating challenges in beating consensus estimates [17].

Company Overview - EuroDry Ltd. is an owner and operator of drybulk vessels, providing seaborne transportation for drybulk cargoes [1][4] - The company was formed on January 8, 2018, and was spun-off from Euroseas Ltd. on May 30, 2018, trading on NASDAQ under the ticker EDRY [4] - EuroDry operates in the dry cargo, drybulk shipping market, with operations managed by Eurobulk Ltd. and Eurobulk (Far East) Ltd. Inc. [5] Fleet Information - EuroDry has a fleet of 13 vessels, which includes 5 Panamax drybulk carriers, 5 Ultramax drybulk carriers, 2 Kamsarmax drybulk carriers, and 1 Supramax drybulk carrier [6] - The total cargo capacity of EuroDry's fleet is 918,502 deadweight tons (dwt) [6] Upcoming Events - The CFO, Dr. Tasos Aslidis, will present at Noble Capital Markets' Basic Industries Emerging Growth Virtual Equity Conference on September 25, 2024, at 3:30 PM Eastern Daylight Time [1] - The presentation will include a fireside style Q&A session, and one-on-one meetings with company executives will be available for registered investors [1] Additional Information - A video webcast of the presentation will be available on the company's website and on Channelchek for 90 days following the event [3] - Noble Capital Markets, the organizer of the conference, is a research-driven investment bank that supports small and microcap companies [7]

Financial Data and Key Metrics Changes - For Q2 2024, total net revenues were $17.4 million, a 68.7% increase from $10.3 million in Q2 2023, driven by higher time charter rates and an increased average number of vessels operated [20] - The net loss attributable to controlling shareholders was $0.41 million, improved from a loss of $1.2 million in Q2 2023 [20] - Adjusted EBITDA for Q2 2024 was $5 million, compared to $2.5 million in Q2 2023 [22] - For the first half of 2024, total net revenues were $31.9 million, a 47% increase from $21.7 million in the first half of 2023 [23] - The net loss attributable to controlling shareholders for the first half of 2024 was $2.2 million, improved from a loss of $2.7 million in the same period of 2023 [24] Business Line Data and Key Metrics Changes - The fleet utilization rate for Q2 2024 was 99.6% commercial and 99.4% operational, compared to 98.3% commercial and 95% operational in Q2 2023 [26] - Average time charter equivalent rate for Q2 2024 was $14,427 per day, up from $12,179 per day in Q2 2023 [26] - Daily operating expenses were $7,062 per vessel per day in Q2 2024, down from $7,656 per vessel per day in Q2 2023 [26] Market Data and Key Metrics Changes - Average spot market rate for Panamaxes was around $14,500 per day in Q2 2024, slightly rising to just below $15,000 by August [10] - One-year time charter rates for Panamaxes were approximately $16,000 per day during the quarter, a significant increase from around $10,500 during the same period last year, marking a nearly 50% increase [10] - The global economy is projected to grow modestly, with the IMF maintaining its 2024 growth forecast at 3.2% [11] Company Strategy and Development Direction - The company plans to continue trading under short-term charters until employment rates firm up, anticipating a strengthening market due to limited supply growth [6] - The fleet consists of 13 vessels, with a focus on maintaining exposure to the market to capitalize on potential demand increases [5] - The company is actively utilizing its share repurchase program to enhance long-term shareholder value [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dry bulk market, citing robust demand growth and disruptions in key shipping routes as positive factors [16] - The outlook for the second half of 2024 is optimistic, with expectations of increased bulker demand due to seasonal factors and potential normalization of transit rates in the Panama Canal [16] - The company is monitoring the economic conditions in China and India closely, as these markets are crucial for future demand in dry bulk trade [12][13] Other Important Information - The company repurchased 313,318 shares for about $5 million under its share repurchase plan, which has been extended for another year [4] - The book value of vessels was approximately $197.2 million, with total assets around $220 million as of June 30, 2024 [31] - The estimated net asset value (NAV) per share is in excess of $63, indicating significant appreciation potential compared to the current trading price [32] Q&A Session Summary Question: Can you provide more color on voyage and dry docking expenses? - Management explained that dry docking expenses vary based on scheduling, with multiple vessels undergoing dry docking in the quarter leading to higher costs [33] Question: What will move EPS into the positive category? - Management indicated that achieving positive EPS will depend on market conditions and the number of vessels undergoing dry docking, with a focus on maintaining a favorable time charter equivalent rate [35] Question: How should off-hire days be considered for vessels with multiple charters? - Management noted that commercial off-hire days are typically around one to one and a half days per quarter, while technical off-hire days vary based on operational incidents [37] Question: What is the idle day number expected in Q3? - Management estimated around 85 to 100 off-hire days due to dry docking in Q3, depending on the specific schedules of vessels [39][42] Question: How sensitive is the stock buyback program to stock price? - Management clarified that the stock buyback program is subject to SEC regulations, which limit the volume and timing of repurchases [44]

Core Viewpoint - EuroDry reported a quarterly loss of $0.17 per share, significantly missing the Zacks Consensus Estimate of $0.58, representing an earnings surprise of -129.31% [1] - The company’s revenues for the quarter were $17.44 million, falling short of the Zacks Consensus Estimate by 2.52%, but showing an increase from $10.34 million year-over-year [2] Group 1: Financial Performance - EuroDry's loss per share of $0.17 compares to a loss of $0.48 per share a year ago, indicating an improvement in year-over-year performance despite the current loss [1] - The company has surpassed consensus EPS estimates two times over the last four quarters, but the recent performance indicates a decline in earnings expectations [2][6] - The current consensus EPS estimate for the upcoming quarter is $0.67, with expected revenues of $17.72 million, and for the current fiscal year, the estimate is $1.54 on revenues of $69.04 million [7] Group 2: Market Position and Outlook - EuroDry shares have increased by approximately 12.2% since the beginning of the year, outperforming the S&P 500's gain of 9% [3] - The Zacks Rank for EuroDry is currently 5 (Strong Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [6] - The Transportation - Shipping industry, to which EuroDry belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

Core Insights - EuroDry Ltd. reported a total net revenue of $17.4 million for Q2 2024, a 68.6% increase from $10.3 million in Q2 2023, driven by higher time charter rates and an increased number of vessels operated [11][19] - The company experienced a net loss attributable to controlling shareholders of $0.41 million in Q2 2024, compared to a net loss of $1.2 million in the same period of 2023 [18][19] - Adjusted EBITDA for Q2 2024 was $5.0 million, up from $2.5 million in Q2 2023, indicating improved operational performance [11][19] Financial Performance - For the first half of 2024, total net revenues reached $31.9 million, a 46.9% increase from $21.7 million in the first half of 2023 [21] - The average time charter equivalent rate for Q2 2024 was $14,427 per day, an 18.5% increase compared to $12,179 per day in Q2 2023 [11][19] - Adjusted net loss for the first half of 2024 was $3.7 million, or $1.35 per share, compared to an adjusted loss of $0.33 per share in the first half of 2023 [29][30] Operational Highlights - The company operated an average of 13 vessels in both Q2 and the first half of 2024, compared to 10 vessels in the same periods of 2023 [11][21] - Daily vessel operating expenses decreased to $6,396 per vessel per day in Q2 2024 from $6,780 in Q2 2023, reflecting improved cost management [10][19] - The fleet utilization rate for Q2 2024 was 99.0%, up from 93.3% in Q2 2023, indicating more efficient use of the fleet [33] Market Environment - The drybulk market showed fluctuations of 5-10% higher than the previous quarter, with signs of seasonal slowdown by the end of June 2024 [7][8] - Earnings for eco-Kamsarmax vessels averaged about $17,800 per day during Q2 2024, while eco-Ultramax vessels earned $3,000 to $4,000 more per day [7] - The company anticipates that low supply growth will support demand increases, particularly influenced by global economic growth and developments in China [8][9] Strategic Initiatives - EuroDry has extended its share repurchase program for another year, having repurchased approximately $5.0 million worth of shares to date [3][9] - The company is evaluating fleet renewal and investment opportunities while maintaining a strategy to capitalize on rate increases through short-term or index-linked charters [9] - The 2023 Sustainability Report has been published, highlighting the company's commitment to environmental, social responsibility, and governance aspects [4][9]

Group 1 - Halliburton Company (HAL) has experienced a 6.2% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - EuroDry Ltd. (EDRY) has seen a significant 24.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Horace Mann Educators Corporation (HMN) has had a 17.5% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] Group 2 - All three companies mentioned have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for their stock performance [3]

Company Participants Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Limited Conference Call on the First Quarter 2024 Financial Results. Good morning, ladies and gentlemen and thank you all for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our Chief Financial Officer. Regarding dry-dockings and repairs, during the quarter, we had two vessels of the growing drydock, motor vessels: Blessed Luck and Molyvos Luck. Motor vessel Starlight under ...

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like t ...