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Tuesday, May 19, 2020
EuroDry Ltd. (EDRY)
Challenging Quarter and Near-term Outlook Remains Uncertain
EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands and trades on the NASDAQ Capital Market under the ticker EDRY. EDRY is the product of a spin-off of the dry bulk fleet by Euroseas (ESEA) completed in May 2018. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Adjusted 1Q2020 EBITDA of $0.8 million was weaker than expected due to lower TCE rates of $7,885/day. Call with management today at 10:00 am EST to discuss 1Q2020 results. The number is (877) 553-9962 and code is Eurodry.
Lowering 2020 estimate. Due to dry bulk market weakness, we are moving adjusted 2020 EBITDA estimate lower to $6.3 million based on TCE rates of $8,909/day, down from $11.5 million based on TCE rates of $11,671/day. Given the current weakness in the dry bulk market environment and COVID-19 uncertainty, we are forecasting that TCE rates remain weak this quarter before recovering in 2H2020. There were limited changes in the contract status update, with…
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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst
certification and important disclosures included in the full report.
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