Dorian LPG Reports Mixed Fourth Quarter Results, Repurchases 8.4 Million Shares
reorian LPG Ltd. (LPG) reported a worse-than-expected Q4 EPS of $ 0.86 compared to the consensus estimate of $ 0.95, due to increased spending. Total revenues, however, exceeded analysts’ expectations. Shares of owners and operators of very large modern gas carriers have jumped 84% in the past year.
Dorian repurchased 8.4 million shares, or 16.8% of the outstanding shares, during the fourth quarter. (See Dorian LPG share analysis on TipRanks)
Total revenue generated in the fourth quarter was $ 99.6 million, beating the consensus estimate of $ 94.4 million. Revenue increased 4.6% year over year and reflects an increase in fleet utilization.
For the year as a whole, total revenues decreased 5.2% year over year to $ 315.9 million due to a decrease in park use . The company reported annual EPS of $ 1.71, up from $ 2.41 a year ago.
Dorian CEO John Hadjipateras said: “Although the past year has presented major challenges related to the pandemic, the engagement of our nearly eight hundred sailors, five hundred currently at sea, as well as the dedication of our shore staff, we believe Dorian LPG is in his strongest position to date. The 13.5% increase in our public tender offer of $ 100 million for the repurchase of 8.4 million shares demonstrates our strong commitment to return capital to shareholders. “
Publish the results of the results, analyst Evercore ISI Sean morgan demoted Dorian to Hold from Buy with a price target of $ 15 (upside potential 5.86%).
Overall, the stock has a moderate buy consensus rating based on a 2 buy, 1 hold and 1 sell rating. The analysts’ average price target of $ 16.38 implies upside potential of 15.6% from current levels.
In addition, Dorian LPG gets a 6 out of 10 from TipRanks’ Smart score rating system, indicating that the stock is likely to perform in line with market averages.
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