Financial Data and Key Metrics Changes - For Q4 2024, the company reported a net income of $42 million, with an adjusted net income of $41 million or $0.35 adjusted earnings per share [5][6] - Adjusted EBITDA for the quarter was $104 million [6] - The excess cash flow for the quarter amounted to $17.6 million, leading to a declared dividend of $0.09 per share [7][8] - Pro forma total cash as of the call was $452 million, while total debt stood at $1.3 billion [8] Business Line Data and Key Metrics Changes - The time charter equivalent (TCE) rate was $16,129 per vessel per day, with combined daily operating expenses and net cash G&A expenses per vessel at $6,320 [10] - The integration of Eagle Bulk has resulted in approximately $22 million in synergies, with a run rate of $50 million in annualized synergies achieved ahead of schedule [10][17] Market Data and Key Metrics Changes - The global dry bulk trade expanded by 3.3% in tons and 5% in ton miles during 2024, supported by high coal, iron ore, and minor bulk exports [34] - China's total dry bulk imports increased by 19.5% over the last two years, driven by post-COVID recovery [35] - The average steaming speed of the fleet decreased to 10.8 knots, influenced by reduced earnings and stricter environmental regulations [32] Company Strategy and Development Direction - The company has amended its dividend policy to allocate up to 60% of excess cash flow towards dividends, with the remainder for share buybacks and growth initiatives [6][7] - The fleet renewal strategy includes selling older vessels and investing in energy-efficient upgrades, with a focus on maintaining a competitive edge in the market [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the medium-term outlook for the dry bulk market, citing favorable supply conditions and recent stimulus measures from the Chinese government [44] - The company is focused on managing its fleet to capitalize on emerging market opportunities amid geopolitical uncertainties [44] Other Important Information - The company received the Deal of the Year Award at the Lloyd's List Greek Shipping Awards for the merger with Eagle Bulk [29] - The fleet consists of 155 vessels with an average age of 11.8 years, positioning the company among the largest dry bulk fleets in the U.S. and Europe [24] Q&A Session Summary Question: Future savings from Eagle Bulk merger - Management indicated there is still room for improvement in operating expenses, particularly in crew wages, and that significant efficiencies are yet to be realized [49][50] Question: Impact of potential trade war on grain trade - Management estimated that Brazilian soybeans could have a ton-mile advantage of about 10% to 15% over U.S. soybeans, potentially leading to increased congestion at South American ports [54] Question: Fleet renewal program and market appetite - Management noted that prices for older vessels have fallen, but they expect the market to improve in the coming months, allowing for continued divestment of less efficient vessels [56] Question: Clarification on capital allocation and excess cash definition - Management confirmed that excess cash is calculated as operating cash flow minus debt payments and scheduled dry docks, with flexibility in using cash for dividends or share buybacks [60][61] Question: Long-term chartering contracts - Management confirmed that the seven long-term charter contracts are at fixed rates for an initial seven-year duration, with about 50% of the $26 million in chartering expenses attributable to these vessels [71][75]

FINANCIAL RESULTS Q4 2024 February 2025 Forward-Looking Statements This presentation contains certain forward-looking statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include statements concerning the Company's plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts, identified by words such a ...

Financial Performance - Star Bulk Carriers reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $0.73 per share a year ago, representing an earnings surprise of -19.05% [1] - The company posted revenues of $308.92 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 7.62%, compared to year-ago revenues of $263.46 million [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates, but has topped consensus revenue estimates three times [2] Stock Performance and Outlook - Star Bulk Carriers shares have increased by approximately 7.7% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The company's earnings outlook is uncertain, with current consensus EPS estimates at -$0.05 on $186.71 million in revenues for the coming quarter and $1.93 on $1.05 billion in revenues for the current fiscal year [7] Industry Context - The Transportation - Shipping industry, to which Star Bulk Carriers belongs, is currently in the bottom 20% of the Zacks industry rankings, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Star Bulk Carriers' stock performance [5][6]

Financial Performance - Star Bulk Carriers reported a net income of $42.4 million for Q4 2024, compared to $39.7 million in Q4 2023, representing a 1.7% increase[24]. - Voyage revenues increased to $308.9 million in Q4 2024 from $263.5 million in Q4 2023, a growth of 17.3%[26]. - Adjusted EBITDA for Q4 2024 was $103.8 million, down from $114.0 million in Q4 2023, reflecting a decrease of 9.6%[25]. - Net income for Q4 2024 was $42,446, an increase of 6.0% compared to $39,707 in Q4 2023[55]. - Adjusted Net Income for the twelve months ended December 31, 2024, was $285,589, up 56.7% from $182,247 in 2023[55]. - Total revenues for Q4 2024 reached $308.9 million, an increase from $263.5 million in Q4 2023[39]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $524,623, representing a 38.3% increase from $379,211 in the previous year[53]. Fleet and Operations - The average number of vessels in the fleet increased to 153.1 in Q4 2024 from 117.8 in Q4 2023, a rise of 29.9%[26]. - The company owns a fleet of 155 vessels with an aggregate capacity of 15.0 million dwt, including various types of bulk carriers[62]. - The average age of the operational fleet remained stable at 12.1 years for both Q4 2024 and Q4 2023[50]. - The company took delivery of multiple vessels in 2024, including Star Voyager, Star Explorer, Stargazer, Star Earendel, Star Illusion, and Star Thetis, each under long-term charter-in arrangements[63]. Expenses and Cost Management - Charter-in hire expenses increased to $26.2 million in Q4 2024 from $3.7 million in Q4 2023, driven by an increase in charter-in days to 1,181 from 123[27]. - Vessel operating expenses rose to $72.8 million in Q4 2024 compared to $54.1 million in Q4 2023, with daily operating expenses per vessel increasing to $5,164 from $4,991[28]. - Dry docking expenses for Q4 2024 were $20.3 million, up from $11.5 million in Q4 2023, with nine vessels completing dry docking surveys compared to eight in the prior year[29]. - General and administrative expenses were $19.0 million in Q4 2024, slightly up from $18.1 million in Q4 2023, including share-based compensation of $5.1 million[30]. - Depreciation expense increased to $44.0 million in Q4 2024 from $33.9 million in Q4 2023, reflecting a rise in the average number of vessels in the fleet to 153.1 from 117.8[31]. - Cost reductions achieved since April 2024 totaled $21.8 million, with $12.6 million realized in Q4 2024 alone, equating to an annualized run rate of over $50.0 million[7]. Cash Flow and Financial Position - Cash and cash equivalents increased to $436.3 million as of December 31, 2024, from $259.7 million a year earlier[40]. - Total assets grew to $4.1 billion as of December 31, 2024, compared to $3.0 billion at the end of 2023[40]. - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $471.2 million, up from $335.8 million in the previous year[41]. - The company reported a net cash provided by operating activities of $471,154 for the twelve months ended December 31, 2024, compared to $335,777 in 2023, marking a 40.3% increase[53]. Market Conditions and Future Outlook - The Time Charter Equivalent (TCE) rate decreased to $16,129 per day in Q4 2024 from $18,296 per day in Q4 2023, indicating weaker market conditions[26]. - Star Bulk Carriers is well-positioned to capitalize on future opportunities in the dry bulk market, despite geopolitical uncertainties and a traditionally weaker first quarter[9]. - The company emphasizes the potential risks and uncertainties that could affect future performance, including market conditions and operational challenges[68]. Shareholder Returns - The company declared a quarterly dividend of $0.09 per share, corresponding to 60% of the cash flow for Q4 2024[10]. - Star Bulk Carriers has repurchased approximately 900,000 shares since the renewal of its share repurchase program, spending over $7.4 million in January 2025[6]. Environmental, Social, and Governance (ESG) - The company is committed to meeting its Environmental, Social, and Governance (ESG) goals and targets amid increasing scrutiny from investors and regulators[68]. Conference Call - The management team will host a conference call on February 19, 2025, to discuss financial results[58].

Core Viewpoint - Star Bulk Carriers Corp. reported strong financial results for Q4 2024, with significant increases in voyage revenues and net income compared to the previous year, despite facing challenges in charter rates and operating expenses [2][28][30]. Financial Performance - Voyage Revenues for Q4 2024 reached $308.9 million, up from $263.5 million in Q4 2023, marking a 17.3% increase [2][30]. - Net Income for Q4 2024 was $42.4 million, compared to $39.7 million in Q4 2023, reflecting a 1.9% increase [2][28]. - Adjusted Net Income for Q4 2024 was $40.6 million, down from $63.5 million in Q4 2023, indicating a decrease of 36.1% [2][28]. - EBITDA for Q4 2024 was $106.2 million, compared to $93.2 million in Q4 2023, representing a 14.4% increase [2][29]. Operational Highlights - The average number of vessels increased to 153.1 in Q4 2024 from 117.8 in Q4 2023, contributing to higher revenues [2][30]. - Daily Time Charter Equivalent (TCE) rate decreased to $16,129 in Q4 2024 from $18,296 in Q4 2023, reflecting weaker market conditions [2][30]. - Daily operating expenses per vessel rose to $5,164 in Q4 2024 from $4,991 in Q4 2023, driven by the acquisition of the Eagle fleet [2][32]. Dividend and Share Repurchase - The Board of Directors declared a quarterly cash dividend of $0.09 per share, corresponding to 60% of the cash flow for Q4 2024 [9][13]. - The company authorized a new $100 million share repurchase program, with $7.4 million spent to repurchase 500,000 shares in January 2025 [9][17]. Cost Management and Synergies - The company achieved cumulative cost reductions of $21.8 million since April 2024, with $12.6 million in cost reductions realized in Q4 2024 alone [10]. - The integration of systems and processes from the Eagle fleet is expected to yield further operational efficiencies [10]. Financing and Debt Management - Star Bulk successfully raised new debt and refinanced existing facilities on favorable terms, reducing costs and extending maturities [11][20]. - The company has an outstanding total notional amount of $50 million under interest rate swaps, with a Mark-to-Market value of $3.2 million as of December 31, 2024 [19]. Market Outlook - The company remains cautiously optimistic about the medium-term outlook for the dry bulk market, citing a low order book and an aging global fleet [12].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Star Bulk Carriers (SBLK), and suggests that while the average brokerage recommendation indicates a "Buy," investors should be cautious and validate this with other analysis tools like the Zacks Rank [1][4][12]. Group 1: Brokerage Recommendations - Star Bulk Carriers has an average brokerage recommendation (ABR) of 1.80, which is between Strong Buy and Buy, based on recommendations from five brokerage firms [2]. - Out of the five recommendations, three are Strong Buy, accounting for 60% of the total recommendations [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often do not effectively guide investors towards stocks with high potential for price appreciation [4][9]. Group 2: Analyst Bias and Limitations - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. - This misalignment of interests can lead to misleading insights regarding a stock's future price movement [6][9]. Group 3: Zacks Rank vs. ABR - The Zacks Rank is a proprietary tool that classifies stocks based on earnings estimate revisions and is considered a reliable indicator of near-term price performance, contrasting with the ABR which is solely based on brokerage recommendations [7][10]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, while the ABR may not be current [11]. Group 4: Current Earnings Outlook for SBLK - The Zacks Consensus Estimate for Star Bulk Carriers has declined by 15% over the past month to $2.75, indicating growing pessimism among analysts regarding the company's earnings prospects [12]. - This decline in earnings estimates has resulted in a Zacks Rank of 5 (Strong Sell) for Star Bulk Carriers, suggesting that the positive ABR should be viewed with skepticism [13].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Star Bulk Carriers despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Star Bulk Carriers is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year decrease of 42.5% [3]. - Revenues are projected to be $287.05 million, which is a 9% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 114.83% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Star Bulk Carriers is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -8.43% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [5][7]. - Stocks with a positive Earnings ESP and a strong Zacks Rank have historically shown a nearly 70% success rate in beating earnings expectations [8]. Historical Performance - In the last reported quarter, Star Bulk Carriers met the expected earnings of $0.71 per share, resulting in no surprise [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Industry Context - In the Zacks Transportation - Shipping industry, Scorpio Tankers is expected to report earnings of $0.49 per share, indicating a year-over-year decline of 82.2% [17]. - Scorpio Tankers has seen a 51.2% downward revision in its consensus EPS estimate over the last 30 days, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [18].

Core Viewpoint - Star Bulk Carriers (SBLK) has gained attention as one of the most searched stocks, prompting analysis of factors influencing its future performance [1] Earnings Estimates - For the current quarter, Star Bulk Carriers is expected to report earnings of $0.45 per share, reflecting a year-over-year decrease of 38.4% [5] - The Zacks Consensus Estimate for the current fiscal year is $2.78, indicating a year-over-year increase of 51.1%, with a 30-day change of +11% [5] - The consensus earnings estimate for the next fiscal year is $2.52, showing a decrease of 9.2% compared to the previous year, with no change over the past month [6] Revenue Growth - The consensus sales estimate for the current quarter is $291.96 million, representing a year-over-year increase of 10.8% [9] - Estimated revenues for the current fiscal year are $1.25 billion, indicating a growth of 31.5%, while the next fiscal year's estimate is $1.14 billion, reflecting a decrease of 8.7% [9] Recent Performance - In the last reported quarter, Star Bulk Carriers achieved revenues of $344.28 million, a year-over-year increase of 54.3%, with an EPS of $0.71 compared to $0.34 a year ago [10] - The company reported a revenue surprise of +0.57% compared to the Zacks Consensus Estimate and had an EPS surprise of 0% [11] Valuation - Star Bulk Carriers is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [15] - Valuation metrics such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [13][14] Market Position - The Zacks Rank for Star Bulk Carriers is 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [7][16]

Group 1 - Star Bulk Carriers (SBLK) closed at $14.68, showing no change from the previous day, while the S&P 500 gained 0.88% [1] - Over the past month, SBLK shares have decreased by 3.74%, underperforming the Transportation sector's gain of 2.17% and the S&P 500's gain of 1.17% [1] Group 2 - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of $0.39, indicating a 46.58% decline from the same quarter last year [2] - Revenue is estimated to be $299.25 million, reflecting a 13.58% increase from the prior-year quarter [2] Group 3 - Recent adjustments to analyst estimates for Star Bulk Carriers are noteworthy, as they often indicate changing near-term business trends [3] - Positive estimate revisions suggest analyst optimism regarding the company's business and profitability [3] Group 4 - The Zacks Rank system, which assesses estimate revisions, indicates that these changes correlate with near-term share price momentum [4] - The Zacks Rank ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically returning an average of +25% annually since 1988 [5] Group 5 - Star Bulk Carriers currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate remaining steady over the past month [5] Group 6 - From a valuation perspective, SBLK has a Forward P/E ratio of 6.47, which is below the industry average of 7.82 [6] Group 7 - The company has a PEG ratio of 4.4, compared to the average PEG ratio of 0.56 for the Transportation - Shipping industry [7] - The Transportation - Shipping industry is ranked 241 in the Zacks Industry Rank, placing it in the bottom 4% of over 250 industries [7] Group 8 - The Zacks Industry Rank evaluates the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Star Bulk Carriers (SBLK) has been a highly searched stock, with its performance being influenced by both market trends and fundamental factors [1] Earnings Estimate Revisions - The current quarter's earnings estimate for Star Bulk Carriers is $0.39 per share, reflecting a decrease of 46.6% year-over-year, with the consensus estimate remaining unchanged over the last 30 days [4] - For the current fiscal year, the consensus earnings estimate is $2.73, indicating an increase of 48.4% from the previous year, also unchanged over the last month [4] - The next fiscal year's consensus earnings estimate is $2.27, showing a decline of 16.9% compared to the prior year, with no changes in the estimate over the past month [5] Revenue Growth - The consensus sales estimate for the current quarter is $299.25 million, representing a year-over-year increase of 13.6% [8] - For the current fiscal year, the sales estimate is $1.26 billion, indicating a growth of 32.3%, while the next fiscal year's estimate is $1.24 billion, reflecting a slight decline of 1.2% [8] Last Reported Results - In the last reported quarter, Star Bulk Carriers achieved revenues of $344.28 million, a year-over-year increase of 54.3%, with an EPS of $0.71 compared to $0.34 a year ago [9] - The reported revenues exceeded the Zacks Consensus Estimate of $342.34 million by 0.57%, while the EPS met the consensus estimate [10] Valuation - Star Bulk Carriers has a Zacks Value Style Score of B, indicating it is trading at a discount compared to its peers [14]