Options trading for Star Bulk Carriers (SBLK, Financial) has seen a significant rise, with volumes reaching 1.7 times the usual levels as the company approaches its earnings announcement. The activity is heavily skewed towards call options, outpacing puts by a 19:5 ratio. The current implied volatility indicates that the market is preparing for a potential price movement of approximately 4.4%, or 72 cents per share, following the earnings report. Historically, the median price change for SBLK around earnings has been 3.9% over the past eight quarters.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Star Bulk Carriers Corp (SBLK, Financial) is $20.71 with a high estimate of $27.00 and a low estimate of $15.50. The average target implies an upside of 26.50% from the current price of $16.38. More detailed estimate data can be found on the Star Bulk Carriers Corp (SBLK) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Star Bulk Carriers Corp's (SBLK, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Star Bulk Carriers Corp (SBLK, Financial) in one year is $17.66, suggesting a upside of 7.85% from the current price of $16.375. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Star Bulk Carriers Corp (SBLK) Summary page.
SBLK Key Business Developments
Release Date: February 19, 2025
- Net Income: $42 million for Q4 2024.
- Adjusted Net Income: $41 million or $0.35 adjusted earnings per share.
- Adjusted EBITDA: $104 million for the quarter.
- Excess Cash Flow: $17.6 million for Q4 2024.
- Dividend Per Share: $0.09, payable on or about March 18, 2025.
- Share Repurchase: 500,000 shares repurchased for $7.4 million at an average price of $14.83 per share.
- Total Shares Outstanding: 117,127,531 as of the call date.
- Proforma Total Debt: $1.3 billion.
- Time Charter Equivalent Rate: $16,129 per vessel per day.
- Daily OPEX and Net Cash G&A Expenses: $6,320 per vessel per day.
- Cash Flow from Operating Activities: $76 million for Q4 2024.
- Ending Cash Balance: $441 million at the end of Q4 2024.
- Debt-Free Vessels: 13 vessels with an aggregate market value of $250 million.
- Annualized Synergies from Eagle Bulk Integration: $50 million achieved ahead of schedule.
- OPEX for Q4 2024: $5,056 per day.
- G&A Expenses for Q4 2024: $1,264 per day.
- Fleet Size: 155 vessels with an average age of 11.8 years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Star Bulk Carriers Corp (SBLK, Financial) reported a net income of $42 million for Q4 2024, with an adjusted net income of $41 million.
- The company achieved an adjusted EBITDA of $104 million for the quarter.
- Star Bulk Carriers Corp (SBLK) declared a dividend of $0.09 per share, payable in March 2025, as part of its new dividend policy.
- The integration of Eagle Bulk resulted in synergies of approximately $22 million, reaching the $50 million annualized synergy target ahead of schedule.
- The company has 13 debt-free vessels with a market value of $250 million, enhancing its financial flexibility.
Negative Points
- Star Bulk Carriers Corp (SBLK) has a significant total debt of $1.3 billion, which could pose financial risks.
- The company reported a decrease in cash balance from $473 million to $441 million by the end of Q4 2024.
- The dry bulk trade is projected to grow by only 0.4% in tons and 0.9% in ton miles in 2025, indicating a potential slowdown in demand.
- Chinese dry bulk imports are expected to slow down in 2025, which could impact the company's revenue.
- The market for older vessels has weakened, with prices falling, which may affect the company's fleet renewal strategy.
