Star Bulk Carriers (NASDAQ:SBLK) shares are ticking higher today after the global shipping company announced a better-than-anticipated set of numbers for the fourth quarter. Despite a year-over-year decline of 10.6%, revenue of $263.46 million exceeded estimates by $60.47 million. EPS of $0.73 landed in line with expectations.
During the quarter, adjusted EBITDA declined to $114 million from $134.58 million in the year-ago period. Further, the daily time charter equivalent rate (TCE) moderated to $18,296 from $19,590 in the prior year period. This decline was primarily attributable to the weak market conditions during the quarter. At the same time, the company’s daily operating expenses (OPEX) per vessel inched higher to $4,991 from $4,469.
Further, SBLK provided key updates on its merger with Eagle Bulk Shipping (NYSE:EGLE). The company has received all necessary approvals and expects the $2.1 billion transaction to close in the first half of this year. Shareholders of Eagle Bulk are set to vote on the deal on April 5, a key event to keep an eye on.
Looking ahead, SBLK expects positive momentum for the dry bulk market due to favorable supply dynamics and demand recovery. Separately, the company announced a quarterly cash dividend of $0.45 per share. The SBLK dividend is payable on March 28 to investors of record on March 12.
What Is the Future of SBLK Stock?
Overall, the Street has a Strong Buy consensus rating on Star Bulk, and the average SBLK price target of $25.67 implies a modest 11.6% potential upside in the stock. That’s after a nearly 25.5% jump in the company’s share price over the past three months.
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