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Ardmore Shipping Gears Up to Report Q4 Earnings: What's in Store?

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Ardmore Shipping Corporation (ASC - Free Report) is scheduled to release fourth-quarter 2024 earnings results on Feb. 13, before market open.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The Zacks Consensus Estimate for ASC’s soon-to-be-reported quarter’s earnings has been revised downward by 46.2% in the past 60 days to 21 cents per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $53.9 million, which indicates a decline of 17.9% from the year-ago levels. 

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Ardmore Shipping has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 5.2%.

Against this backdrop, let us take a look at the factors that might have shaped the company’s December-quarter performance.

We expect Ardmore Shipping’s results to reflect the bearishness surrounding the tanker market, as tanker rates are currently not at healthy levels. The slowdown in global economic growth has hurt shipping rates. 

Tanker rates have been hit by an oversupply of vessels and subdued demand. Slow demand growth has put downward pressure on freight rates. 

Time Charter Equivalent or TCE rates, which represent net revenues (revenues less voyage expenses) divided by revenue days, are likely to have declined in the to-be-reported quarter due to unfavorable spot rates. Moreover, costs are likely to have been steep due to a rise in oil prices, which were up 5.2% in the October- December period.

What Does the Zacks Model Predict About ASC?

The proven Zacks model does not predict an earnings beat for ASC this time around. The combination of a positive  Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here.

Earnings ESP of ASC:  Ardmore Shipping has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ASC’s Zacks Rank: Ardmore Shipping currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

ASC’s Dismal Price Performance 

Shares of Ardmore Shipping have plummeted 40.3% in the past six months, underperforming its industry  and fellow shipping companies, Seanergy Maritime Holdings (SHIP - Free Report) and Frontline Plc (FRO - Free Report) .

Six-Month Price Comparison

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