Dorian LPG Ltd. (LPG) reported a worse-than-expected Q4 EPS of $0.86 versus the consensus estimate of $0.95, due to increased expenses. Total revenues, however, beat analysts’ expectations. Shares of the owner and operator of modern very large gas carriers have jumped 84% over the past year.
Dorian bought back 8.4 million shares, or 16.8% of the outstanding shares, during the fourth quarter. (See Dorian LPG stock analysis on TipRanks)
Total revenues generated in the fourth quarter amounted to $99.6 million, topping the consensus estimate of $94.4 million. Revenues increased 4.6% year-over-year and reflected an increase in fleet utilization.
For the full year, total revenues declined 5.2% year-over-year to $315.9 million due to decreased fleet utilization. The company reported full-year EPS of $1.71 compared to $2.41 reported a year ago.
Dorian’s CEO John Hadjipateras said, “Though the past year presented major challenges relating to the pandemic, the commitment of our nearly eight hundred seafarers, five hundred presently at sea, as well as the dedication of our shore-side staff, we believe has put Dorian LPG in its strongest position to date. Upsizing our $100 million self-tender offer by 13.5% to repurchase 8.4 million shares demonstrates our strong commitment to returning shareholder capital.”
Post the earnings results, Evercore ISI analyst Sean Morgan downgraded Dorian to Hold from Buy with a price target of $15 (5.86% upside potential).
Overall, the stock has a Moderate Buy consensus rating based on 2 Buy, 1 Hold, and 1 Sell rating. The average analyst price target of $16.38 implies 15.6% upside potential from current levels.
Furthermore, Dorian LPG scores 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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