Global Ship Lease (NYSE:GSL) Stock, Quote.Headers.trade-ideas

Global Ship Lease

Global Ship Lease Inc operates in the container shipping industry. The company owns and charters out containerships under long-term, fixed-rate charters to container liner companies. The majority of the company's revenues are derived from charters to MAERSK. Its fleet consisted of more than 60 containerships.

Cargo,Container,Ship,,Cargo,Vessel,Ship,Carrying,Container,And,Running

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Markets

ESEA

MATX

TRTN

Possible labor strikes may cause disruptions in container industry and affect freight rates. Market braces for impact, experts say

Strikes At US Ports, Canada&#39;s Railways May Cause Container Freight Rate Volatility

Transatlantic Container Shipping Volumes Rise As Possible Strike At U.S. Ports Hovers

Earnings

News

Small Cap

Analyst Ratings

Trading Ideas

New analyst coverage greatly benefits investors by providing comprehensive data on stocks for an informed investment decision. Analysts possess information crucial for investors, and their insights are highly valued. Without them, stocks may be misinterpreted and potentially mispriced.


2 Stocks in Focus As New Analysts Initiate Coverage

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Global Ship Lease Inc

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GREEN SCIENTIFIC LBS HLD by Green Scientific Labs Holdings Inc.

Go Solar USA Inc

GEOSOLAR TECHNOLOGIES INC by GEOSOLAR TECHNOLOGIES, INC.

Geosolar Technologies Inc

Global Ship Lease, Inc. Depository Shares Representing 1/100th Perpetual Preferred Series B% (Marshall Island)

Possible labor strikes at U.S. East and Gulf coast ports and Canadian railways may lead to volatility in <a href="https://www.benzinga.com/news/global/24/08/40451543/transatlantic-container-shipping-volumes-rise-as-possible-strike-at-u-s-ports-hovers">container freight rates</a> by causing supply-chain disruptions for the container industry and cargo owners, according to an industry expert.
&#8220;With the looming strikes at Canadian railways and U.S. ports, we may see an immediate uptick in freight rates as market participants brace for significant disruptions,&#8221; said Christian Roeloffs, CEO of German online container marketplace Container xChange.
Read Also: <a href="https://www.benzinga.com/top-stories/24/07/39964809/stock-of-the-day-reversal-for-sfl-corp-why-investors-are-concerned">Stock Of The Day: Reversal For SFL Corp? Why Investors Are Concerned</a>
&#8220;The possibility of simultaneous strikes at U.S. ports and Canadian railways present a perfect storm for North American trade.&#8221;
Canadian&nbsp;National&nbsp;Railway and&nbsp;Canadian&nbsp;Pacific Kansas City plan to lock out thousands of rail workers on Thursday if they cannot reach labor agreements with the Teamsters Canada Rail Conference, Reuters reported.
The Teamsters issued a 72-hour strike notice on Sunday to CPKC ahead of the company's lockout notice.
Meanwhile, the International Longshoreman Association, which represents 45,000 dockworkers at three dozen U.S. ports, plans to go on strike on Oct. 1 if it does not sign a new labor contract with the U.S. Maritime Alliance by that date.
Price Action: Container leasing and container liner stocks saw gains and losses on Wednesday.
<ul>
<li>Triton International Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRTN#NYSE">TRTN</a>) was down 0.53% to close at $26.18</li>
<li>Euroseas Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) declined 4.98% to $45.42.</li>
<li>Global Ship Lease, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) slipped 0.87% to $26.17</li>
<li>Matson, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MATX#NYSE">MATX</a>) picked up 2.09% to $133.73</li>
<li>Danaos Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) declined 0.90% to $82.36</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/06/39323886/new-chinese-megaport-roils-us-trading-influence-with-south-america">New Chinese Megaport Roils US Trading Influence With South America</a></li>
</ul>
Photo: Shutterstock

Strikes At US Ports, Canada's Railways May Cause Container Freight Rate Volatility

Transatlantic container shipping volumes into the U.S. are <a href="https://www.benzinga.com/news/earnings/24/08/40439449/why-is-israel-based-cargo-shipping-company-zim-integrated-stock-surging-today">making a comeback </a>as U.S. retailers look to replenish inventories ahead of possible strike action at U.S. ports.
&#8220;There is some temptation by customers to bring in goods ahead of the labor contract expiry on Sept. 30,&#8221; Hapag-Lloyd CEO Rolf Habben Jansen said in an online news briefing, Reuters reported.
Hapag-Lloyd is the world&#8217;s fifth-largest container liner.
Freight sector analysts are closely following contract talks between cargo worker unions and port managers in case the September deadline is missed and a strike becomes imminent.
Retailers have also put in their orders sooner as they expect their goods to take longer trips around Africa to avoid Houthi-led attacks in the Red Sea, Hansen said.
Read Also: <a href="https://www.benzinga.com/government/24/03/37969025/baltimore-bridge-ship-collisions-not-uncommon-5-more-u-s-fatal-accidents">Baltimore Bridge: Ship Collisions Not Uncommon — 5 More Fatal Accidents In US</a>
This jump in ordering by U.S. retailers can be good news for several other liner operators that ship goods across the Atlantic basin to the U.S., such as Euroseas Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>), Global Ship Lease Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) and Danaos Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>).
This good news for container shipping comes as ZIM Integrated Shipping Services Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZIM#NYSE">ZIM</a>) posted very strong second-quarter earnings on Monday by capitalizing on transpacific trade into the U.S.
The company&#8217;s average freight rate for a 20-foot container came in at $1,674 for the second quarter, up from $1,193 for the same period last year. ZIM carried 952,000 20-foot containers in the quarter, up from 860,000 such containers a year ago.
ZIM posted earnings per share of $3.08 for the quarter, blowing away analyst EPS consensus of $1.79. Second-quarter revenue totaled $1.933 billion, up from $1.31 billion a year earlier.
Price Actions: Container shipping stocks trended upward on Monday.
<ul>
<li>ZIM jumped 16.74% to close at $22.25</li>
<li>Euroseas gained 6.36% to finish the day at $47.02</li>
<li>Global Ship Lease rose 1.26% to $27.24</li>
<li>Danaos picked up 2% to $84.23</li>
</ul>
Read Now: • <a href="https://www.benzinga.com/markets/equities/24/03/37961583/tesla-gm-ford-supply-chain-concerns-baltimore-port-closure-going-to-have-an-impact">Tesla, GM, Ford Supply Chain Concerns: Baltimore Port Closure &#8216;Going To Have An Impact&#8217;</a>
Photo: Shutterstock

Jefferies analyst Omar Nokta maintains Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) with a Buy and maintains $29 price target.

Price Target

Jefferies Maintains Buy on Global Ship Lease, Maintains $29 Price Target

Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) reported quarterly earnings of $2.46 per share which beat the analyst consensus estimate of $2.29 by 7.42 percent. The company reported quarterly sales of $175.000 million which beat the analyst consensus estimate of $171.713 million by 1.91 percent. This is a 7.97 percent increase over sales of $162.080 million the same period last year.

Earnings Beats

Global Ship Lease Q2 2024 Adj. EPS $2.46 Beats $2.29 Estimate, Sales $175.000M Beat $171.713M Estimate

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>JCI</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>07/19/24</td>
<td>$67.50</td>
<td>$27.9K</td>
<td>2.5K</td>
<td>3.6K</td>
</tr>
<tr>
<td>ZIM</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$20.00</td>
<td>$36.4K</td>
<td>2.1K</td>
<td>3.0K</td>
</tr>
<tr>
<td>SPWR</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>07/12/24</td>
<td>$2.00</td>
<td>$29.4K</td>
<td>587</td>
<td>1.6K</td>
</tr>
<tr>
<td>DAL</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>06/20/25</td>
<td>$45.00</td>
<td>$30.4K</td>
<td>2.5K</td>
<td>1.3K</td>
</tr>
<tr>
<td>UBER</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>08/16/24</td>
<td>$70.00</td>
<td>$57.9K</td>
<td>7.0K</td>
<td>152</td>
</tr>
<tr>
<td>GSL</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$30.00</td>
<td>$30.0K</td>
<td>1.9K</td>
<td>134</td>
</tr>
<tr>
<td>JBHT</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$165.00</td>
<td>$33.9K</td>
<td>48</td>
<td>81</td>
</tr>
<tr>
<td>GEV</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>07/19/24</td>
<td>$180.00</td>
<td>$171.5K</td>
<td>1.7K</td>
<td>34</td>
</tr>
<tr>
<td>SAIA</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>07/19/24</td>
<td>$490.00</td>
<td>$43.0K</td>
<td>1.0K</td>
<td>26</td>
</tr>
<tr>
<td>JBLU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>07/18/25</td>
<td>$10.00</td>
<td>$32.4K</td>
<td>1.6K</td>
<td>0</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding JCI (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCI#NYSE">JCI</a>), we observe a call option sweep with bearish sentiment. It expires in 14 day(s) on July 19, 2024. Parties traded 465 contract(s) at a $67.50 strike. This particular call needed to be split into 15 different trades to become filled. The total cost received by the writing party (or parties) was $27.9K, with a price of $60.0 per contract. There were 2557 open contracts at this strike prior to today, and today 3612 contract(s) were bought and sold. 
• Regarding ZIM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZIM#NYSE">ZIM</a>), we observe a put option sweep with bearish sentiment. It expires in 42 day(s) on August 16, 2024. Parties traded 243 contract(s) at a $20.00 strike. This particular put needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $36.4K, with a price of $150.0 per contract. There were 2154 open contracts at this strike prior to today, and today 3056 contract(s) were bought and sold. 
• Regarding SPWR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPWR#NASDAQ">SPWR</a>), we observe a put option sweep with bearish sentiment. It expires in 7 day(s) on July 12, 2024. Parties traded 2102 contract(s) at a $2.00 strike. This particular put needed to be split into 40 different trades to become filled. The total cost received by the writing party (or parties) was $29.4K, with a price of $14.0 per contract. There were 587 open contracts at this strike prior to today, and today 1683 contract(s) were bought and sold. 
• Regarding DAL (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), we observe a put option sweep with bullish sentiment. It expires in 350 day(s) on June 20, 2025. Parties traded 67 contract(s) at a $45.00 strike. This particular put needed to be split into 19 different trades to become filled. The total cost received by the writing party (or parties) was $30.4K, with a price of $455.0 per contract. There were 2521 open contracts at this strike prior to today, and today 1334 contract(s) were bought and sold. 
• For UBER (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>), we notice a put option trade that happens to be bullish, expiring in 42 day(s) on August 16, 2024. This event was a transfer of 161 contract(s) at a $70.00 strike. The total cost received by the writing party (or parties) was $57.9K, with a price of $360.0 per contract. There were 7067 open contracts at this strike prior to today, and today 152 contract(s) were bought and sold. 
• For GSL (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>), we notice a call option trade that happens to be bullish, expiring in 196 day(s) on January 17, 2025. This event was a transfer of 200 contract(s) at a $30.00 strike. The total cost received by the writing party (or parties) was $30.0K, with a price of $150.0 per contract. There were 1999 open contracts at this strike prior to today, and today 134 contract(s) were bought and sold. 
• Regarding JBHT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>), we observe a call option sweep with bearish sentiment. It expires in 133 day(s) on November 15, 2024. Parties traded 39 contract(s) at a $165.00 strike. This particular call needed to be split into 20 different trades to become filled. The total cost received by the writing party (or parties) was $33.9K, with a price of $870.0 per contract. There were 48 open contracts at this strike prior to today, and today 81 contract(s) were bought and sold. 
• For GEV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), we notice a call option sweep that happens to be bearish, expiring in 14 day(s) on July 19, 2024. This event was a transfer of 350 contract(s) at a $180.00 strike. This particular call needed to be split into 38 different trades to become filled. The total cost received by the writing party (or parties) was $171.5K, with a price of $490.0 per contract. There were 1715 open contracts at this strike prior to today, and today 34 contract(s) were bought and sold. 
• For SAIA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAIA#NASDAQ">SAIA</a>), we notice a call option trade that happens to be neutral, expiring in 14 day(s) on July 19, 2024. This event was a transfer of 100 contract(s) at a $490.00 strike. The total cost received by the writing party (or parties) was $43.0K, with a price of $430.0 per contract. There were 1088 open contracts at this strike prior to today, and today 26 contract(s) were bought and sold. 
• For JBLU (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>), we notice a call option sweep that happens to be bullish, expiring in 378 day(s) on July 18, 2025. This event was a transfer of 772 contract(s) at a $10.00 strike. This particular call needed to be split into 15 different trades to become filled. The total cost received by the writing party (or parties) was $32.4K, with a price of $42.0 per contract. There were 1684 open contracts at this strike prior to today, and today 0 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

JBHT

JBLU

SAIA

SPWR

UBER

10 Industrials Stocks Whale Activity In Today's Session

New analyst coverage greatly benefits investors by providing comprehensive data on stocks for an informed investment decision. Analysts possess information crucial for investors, and their insights are highly valued. Without them, stocks may be misinterpreted and potentially mispriced. 
Recently, several stocks, including GigaCloud Technology Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gct#NASDAQ">GCT</a>) and Global Ship Lease, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>), have caught the attention of analysts, signaling potential value and growth opportunities for investors. 
Analysts do not randomly choose which stocks to cover. Typically, the decision to add a stock to their coverage is driven by significant investor interest or prospects associated with it. 
A noteworthy observation is that stocks tend to experience gradual upward price movements when they receive new analyst coverage compared with the price changes seen with existing analyst coverage. The extent of this price movement is influenced by the recommendations of the new analysts. Positive recommendations like &quot;Buy&quot; and &quot;Strong Buy&quot; result in a more substantial positive price reaction than &quot;Strong Sell,&quot; &quot;Sell,&quot; or &quot;Hold&quot; recommendations. 
When an analyst provides a new recommendation for a company with limited or no prior analyst coverage, investors pay more attention to the stock. Additionally, any fresh information attracts portfolio managers, who may decide to build a position in the stock. 
Instead of focusing on a single recommendation change, it is advisable to consider the average change in broker recommendations. Upgrades, initiations and increased coverage by multiple analysts carry equal significance in assessing a stock&#39;s potential. 
To formulate a prudent strategy, it is worthwhile to concentrate on the number of analyst recommendations that have increased in recent weeks. This approach can provide valuable insights into the overall sentiment and potential trajectory of a stock.
<h3>Screening Criteria</h3>
The Number of Broker Ratings now greater than the Number of Broker Ratings four weeks ago (this will shortlist stocks that have recent new coverage). 
Average Broker Rating less than Average Broker Rating four weeks ago (&quot;less than&quot; means &quot;better than&quot; four weeks ago). 
Increased analyst coverage and improving average rating are the primary criteria of this strategy, but one should also consider other relevant parameters to make it foolproof.
<h3>Here are the other screening parameters:</h3>
Price greater than or equal to $5 (as a stock below $5 will not likely create significant interest for most investors). 
Average Daily Volume greater than or equal to 100,000 shares (if the volume isn&#39;t enough, it will not attract individual investors).
<h3>Here are two out of the six stocks that passed the screen:</h3>
GigaCloud: Headquartered in El Monte, CA, this company offers comprehensive B2B e-commerce solutions for large parcel merchandise both in the United States and globally. GCT shares have gained 65% so far this year, outperforming the industry&#39;s 19% rise. 
GCT currently sports a Zacks Rank #1 (Strong Buy). Earnings per share estimates for GCT have moved north to $3.25 from $2.98 for 2024 over the past 60 days, depicting analysts&#39; optimism over the company&#39;s prospects. Earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 47.9%. GCT has a VGM Score of A. 
Global Ship Lease: Based in Athens, Greece, this company specializes in owning and chartering containerships, offering fixed-rate charters to container shipping companies around the world. GSL shares have gained 43.7% so far this year, outperforming the industry&#39;s 15.7% growth. 
GSL currently carries a Zacks Rank #3 (Hold). EPS estimates for GSL have moved north to $9.62 from $9.40 for 2024 over the last 60 days. Earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.7%. 
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. 
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. 
<a href="https://www.zacks.com/stock/news/2290714/2-stocks-in-focus-as-new-analysts-initiate-coverage?cid=CS-BENZ-FT-analyst_blog|rw-2290714">To read this article on Zacks.com click here.</a>

Quarterly supplemental dividends of $0.075 per share represent a 20% increase in dividend payments to common shareholders &nbsp;
Increased dividend payments reflect material outperformance of containership charter markets
ATHENS, Greece, May 28, 2024 (GLOBE NEWSWIRE) -- Global Ship Lease, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) (the "Company"), a containership charter owner, today announced the introduction of a quarterly supplemental dividend to common shareholders.
Recent containership charter market strength is enabling Global Ship Lease to secure higher-than-anticipated cashflows from time charters with longer-than-anticipated durations. As a result, in addition to the sustainable dividend of $0.375 per Class A common share per quarter, commencing with the dividend payable after the release of the Company's earnings for the second quarter of 2024, Global Ship Lease expects to initiate a supplemental dividend of $0.075 per Class A common share per quarter, an increase of 20%, for as long as conditions are supportive.

Dividends

Global Ship Lease Expects To Initiate A Supplemental Dividend Of $0.075 Per Share, An Increase Of 20%, For As Long As Conditions Are Supportive

Jefferies analyst Omar Nokta maintains Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) with a Buy and raises the price target from $26 to $29.

Jefferies Maintains Buy on Global Ship Lease, Raises Price Target to $29

Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) reported quarterly earnings of $2.53 per share which beat the analyst consensus estimate of $2.27 by 11.45 percent. This is a 19.34 percent increase over earnings of $2.12 per share from the same period last year. The company reported quarterly sales of $179.561 million which beat the analyst consensus estimate of $168.061 million by 6.84 percent. This is a 12.73 percent increase over sales of $159.291 million the same period last year.

Global Ship Lease Q1 2024 Adj EPS $2.53 Beats $2.27 Estimate, Sales $179.561M Beat $168.061M Estimate

Jefferies analyst Omar Nokta reiterates Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) with a Buy and maintains $25 price target.

Reiteration

Jefferies Reiterates Buy on Global Ship Lease, Maintains $25 Price Target

Global Ship Lease Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) shares are trading lower after the company reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/g37453394/global-ship-lease-reports-results-for-the-fourth-quarter-of-2023" rel="noreferrer noopener">fourth-quarter FY23 results</a>.
Operating revenue grew 8.4% Y/Y to $178.9 million, beating the consensus of $172.0 million. Operating income declined to $78.9 million from $85.1 million a year ago. 
Revenue increased Y/Y due to charter renewals at higher rates on several vessels, the acquisition of four vessels (delivered in the second quarter of 2023), and a decrease in planned and unplanned off-hire days.
Adjusted EBITDA improved by 27.1% Y/Y to $127.1 million. Normalized EPS rose 16.4% Y/Y to $2.49,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of $2.35</a>.
Utilization for the quarter was 98.1% compared to 94.2% in the same period of the prior year. Time charter and voyage expenses were $5.4 million, compared to $6.6 million in the prior year quarter.
Vessel operating expenses increased by 3.1% to $47.0 million, with a 1.5% Y/Y decline in average cost per ownership day to $7,505.
As of December 31, 2023, the company had 68 containerships in its fleet. Global Ship Lease generated an operating cash flow of $105.5 million in the quarter.
Dividend: The company declared a dividend of $0.375 per Class A common share payable on March 6, 2024, to shareholders of record as of February 22, 2024.
George Youroukos, Executive Chairman, said, &#8220;Trade disruptions in the Red Sea significantly escalated towards the end of the fourth quarter of 2023, resulting in large-scale re-routing of containerships away from the Suez Canal and around the Cape of Good Hope, absorbing substantial effective supply.&#8221;&nbsp;
&#8220;Meanwhile, water shortages in the Panama Canal have led to a reduction in the number of vessels that can transit that key waterway, adding further bottlenecks to the global supply chain. Taken together, these two developments have caused a meaningful tightening of containership supply and demand &#8211; arresting, and even reversing, the previous downward normalization of charter rates and asset values.&#8221;
&#8220;It is impossible to predict how long disruptions to the Red Sea and Panama will last, and significant macroeconomic, geopolitical, and&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">regulatory uncertainty remain prominent features of the market outlook.&#8221;</a>
Price Action: GSL shares are trading lower by 6.6% at $19.24 on the last check Monday.
Yemen Red Sea &#x7C; Photo courtesy: Wikimedia

Equities

Guidance

Movers

Why Is Global Ship Lease Stock Trading Lower Today?

On CNBC&rsquo;s &quot;Mad Money Lightning Round,&quot; Jim Cramer said he can&rsquo;t recommend Global Ship Lease, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>) as &quot;we don&rsquo;t really <a href="https://www.benzinga.com/quote/GSL/news"> know what they own.&quot; </a>
Global Ship Lease is expected to report results for the fourth quarter and full year 2023 on March 4, 2024. Analysts expect the company to report quarterly earnings at $2.35 per share on revenue of $172.02 million.
Cramer said Magnite, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mgni#NASDAQ">MGNI</a>) has caught his eye, too. &quot;I think you&rsquo;ve got an interesting stock here.&quot;
On Feb. 28, Magnite reported better-than-expected fourth-quarter financial results. Multiple analysts also raised their price targets on the stock following the report.
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
When asked about Roku, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/roku#NASDAQ">ROKU</a>), he said, &quot;You are in the house of pain, and I&rsquo;ve got to tell you, I don&rsquo;t think the door is going to open and let you out soon.&quot;
On Feb. 15, Roku reported fourth-quarter revenue of $984.42 million, which was up 14% year-over-year. The revenue came in ahead of a Street consensus estimate of $966.3 million, according to data from Benzinga Pro.
The &quot;Mad Money&quot; host said Dream Finders Homes, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dfh#NYSE">DFH</a>) is a &quot;company that&rsquo;s a home builder, frankly, and I prefer Toll Brothers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tol#NYSE">TOL</a>) and then Lennar (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/len#NYSE">LEN</a>). But they&rsquo;re all doing well.&quot;
On Feb. 29, Dream Finders Homes reported better-than-expected fourth-quarter earnings and sales results.
<h3>Price Action:</h3>
<ul>
<li>Shares of Global Ship Lease gained 1.2% to close at $20.60 on Friday.</li>
<li>Magnite shares gained 1.8% to close at $12.23 on Friday.</li>
<li>Roku shares gained 0.3% to settle at $63.35.</li>
<li>Dream Finders Homes shares fell 1.5% to settle at $38.54 on Friday.</li>
</ul>
Now Read This: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37420040/around-2m-bet-on-tile-shop-holdings-check-out-these-4-stocks-insiders-are-buying"> Around $2M Bet On Tile Shop Holdings? Check Out These 4 Stocks Insiders Are Buying </a>

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'I Think You've Got An Interesting Stock Here': Cramer On This Advertising Company

Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) reported quarterly adjusted earnings of $2.49 per share which beat the analyst consensus estimate of $2.35 by 5.96 percent. This is a 16.36 percent increase over earnings of $2.14 per share from the same period last year. The company reported quarterly sales of $178.90 million which beat the analyst consensus estimate of $172.02 million by 4.00 percent. This is a 8.41 percent increase over sales of $165.02 million the same period last year.

Global Ship Lease Q4 Adj. EPS $2.49 Beats $2.35 Estimate, Sales $178.90M Beat $172.02M Estimate

<h3>Companies Reporting Before The Bell</h3>
&bull; Sohu.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOHU#NASDAQ">SOHU</a>) is estimated to report earnings for its fourth quarter.
&bull; Avadel Pharmaceuticals (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVDL#NASDAQ">AVDL</a>) is projected to report quarterly loss at $0.29 per share on revenue of $18.11 million.
&bull; LENSAR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LNSR#NASDAQ">LNSR</a>) is expected to report quarterly loss at $0.22 per share on revenue of $12.00 million.
&bull; Sea (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SE#NYSE">SE</a>) is projected to report quarterly loss at $0.27 per share on revenue of $3.53 billion.
&bull; Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) is estimated to report quarterly earnings at $2.35 per share on revenue of $172.02 million.
&bull; Modiv Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MDV#NYSE">MDV</a>) is likely to report earnings for its fourth quarter.
&bull; GEO Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEO#NYSE">GEO</a>) is estimated to report earnings for its fourth quarter.
<h3>Companies Reporting After The Bell</h3>
&bull; Nektar Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NKTR#NASDAQ">NKTR</a>) is estimated to report quarterly loss at $0.21 per share on revenue of $18.05 million.
&bull; Ekso Bionics Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EKSO#NASDAQ">EKSO</a>) is estimated to report quarterly loss at $0.11 per share on revenue of $4.77 million.
&bull; ContextLogic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WISH#NASDAQ">WISH</a>) is likely to report quarterly loss at $2.66 per share on revenue of $53.06 million.
&bull; Stellus Cap Investment (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCM#NYSE">SCM</a>) is expected to report quarterly earnings at $0.45 per share on revenue of $27.41 million.
&bull; Crawford &amp; Company Common Stock (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRD#NYSE">CRD</a>) is expected to report quarterly earnings at $0.20 per share on revenue of $317.48 million.
&bull; Eos Energy Enterprises (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EOSE#NASDAQ">EOSE</a>) is likely to report quarterly loss at $0.25 per share on revenue of $9.00 million.
&bull; Southland Holdings (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/SLND#AMEX">SLND</a>) is expected to report quarterly earnings at $0.02 per share on revenue of $274.41 million.
&bull; Commercial Vehicle Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CVGI#NASDAQ">CVGI</a>) is likely to report quarterly earnings at $0.14 per share on revenue of $226.24 million.
&bull; Paymentus Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAY#NYSE">PAY</a>) is estimated to report quarterly earnings at $0.07 per share on revenue of $157.42 million.
&bull; Northwest Pipe (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWPX#NASDAQ">NWPX</a>) is likely to report quarterly earnings at $0.42 per share on revenue of $107.35 million.
&bull; Crescent Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRGY#NYSE">CRGY</a>) is estimated to report quarterly earnings at $0.15 per share on revenue of $607.02 million.
&bull; Stitch Fix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) is estimated to report quarterly loss at $0.20 per share on revenue of $330.85 million.
&bull; Stereotaxis (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/STXS#AMEX">STXS</a>) is expected to report quarterly loss at $0.07 per share on revenue of $7.70 million.
&bull; SEMrush Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SEMR#NYSE">SEMR</a>) is estimated to report quarterly earnings at $0.03 per share on revenue of $83.11 million.
&bull; Akoya Biosciences (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AKYA#NASDAQ">AKYA</a>) is expected to report quarterly loss at $0.27 per share on revenue of $25.89 million.
&bull; ThredUp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TDUP#NASDAQ">TDUP</a>) is likely to report quarterly loss at $0.13 per share on revenue of $80.33 million.
&bull; AeroVironment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVAV#NASDAQ">AVAV</a>) is estimated to report quarterly earnings at $0.33 per share on revenue of $170.62 million.
&bull; Cara Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARA#NASDAQ">CARA</a>) is estimated to report quarterly loss at $0.41 per share on revenue of $9.42 million.
&bull; GitLab (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GTLB#NASDAQ">GTLB</a>) is expected to report quarterly earnings at $0.08 per share on revenue of $158.21 million.
&bull; Viant Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DSP#NASDAQ">DSP</a>) is estimated to report quarterly loss at $0.03 per share on revenue of $65.92 million.
&bull; Vicarious Surgical (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBOT#NYSE">RBOT</a>) is expected to report earnings for its fourth quarter.
&bull; Innovate (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VATE#NYSE">VATE</a>) is likely to report earnings for its fourth quarter.
This article was generated by Benzinga&#39;s automated content engine and reviewed by an editor.

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Avadel Pharmaceuticals plc - American Depositary Shares each representing one Ordinary Share

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Earnings Scheduled For March 4, 2024

With U.S. stock futures trading higher this morning on Monday, some of the stocks that may grab investor focus today are as follows:
Wall Street expects Sea Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/se#NYSE">SE</a>) to report a quarterly loss at 27 cents per share on revenue of $3.55 billion before the opening bell, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>. Sea shares fell 0.3% to $50.90 in after-hours trading.
Analysts are expecting AeroVironment, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/avav#NASDAQ">AVAV</a>) to have earned 33 cents per share on revenue of $170.63 million for the latest quarter. The company will release earnings after the markets close. AeroVironment shares gained 1% to $130.00 in after-hours trading.
LL Flooring Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ll#NYSE">LL</a>) reported a narrower-than-expected loss for its fourth quarter on Friday. LL Flooring shares surged 6.5% to $2.28 in the after-hours trading session.
Check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
Analysts expect Stitch Fix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sfix#NASDAQ">SFIX</a>) to report a quarterly loss at 20 cents per share on revenue of $330.86 million after the closing bell. Stitch Fix shares gained 1.6% to $3.26 in after-hours trading.
Before the markets open, Global Ship Lease, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>) is projected to post quarterly earnings at $2.35 per share on revenue of $172.02 million. Global Ship Lease shares gained 0.6% to $20.73 in after-hours trading.
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37414137/jim-cramer-says-this-is-a-smart-consulting-company-calls-commercial-metals-company-a-win"> Jim Cramer Says This Is A &#39;Smart Consulting Company,&#39; Calls Commercial Metals Company A Winner </a>

Penny Stocks

Pre-Market Outlook

Sea, AeroVironment And 3 Stocks To Watch Heading Into Monday

The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, with the index remaining in the &quot;Extreme Greed&quot; zone on Friday.
U.S. stocks closed higher on Friday, with the Nasdaq Composite surging to an all-time high during the session. On a weekly basis, the Nasdaq gained 1.74%, while the S&amp;P 500 gained 0.95%.
NVIDIA Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) shares gained 4%, while Meta Platforms, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) added 2.5% on Friday. Shares of Dell Technologies Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dell#NYSE">DELL</a>) jumped around 32% on Friday after the company reported better-than-expected fourth-quarter financial results and increased its annual cash dividend by 20%.
On the economic data front, the ISM manufacturing PMI declined to 47.8 in February from 49.1 a month ago, compared to market estimates of 49.5. The University of Michigan consumer sentiment for the U.S. fell to 76.9 in February versus a preliminary reading of 79.6 and versus January&rsquo;s reading of 79.
Most sectors on the S&amp;P 500 closed on a positive note, with energy, information technology, and real estate stocks recording the biggest gains on Friday. However, utilities and financials stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 91 points to 39,087.38 on Friday. The S&amp;P 500 rose 0.80% at 5,137.08, while the Nasdaq Composite climbed 1.14% at 16,274.94 during Friday&rsquo;s session.
Investors are awaiting earnings results from Global Ship Lease, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>), Commercial Vehicle Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cvgi#NASDAQ">CVGI</a>), AeroVironment, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/avav#NASDAQ">AVAV</a>), and Stitch Fix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sfix#NASDAQ">SFIX</a>) today.
At a current reading of 77.3, the index remained in the &quot;Extreme Greed&quot; zone on Friday versus a prior reading of 76.9.
What is CNN Business Fear &amp; Greed Index?
The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
&nbsp;
Read Next: <a href="https://www.benzinga.com/news/24/03/37420039/top-3-industrial-stocks-that-may-collapse-this-quarter"> Top 3 Industrial Stocks That May Collapse This Quarter </a>

DELL

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Investor Sentiment Improves Further, Nasdaq Hits New High

Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) is set to give its latest quarterly earnings report on Monday, 2024-03-04. Here's what investors need to know before the announcement.
Analysts estimate that Global Ship Lease will report an earnings per share (EPS) of $2.35. 
Global Ship Lease bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
Last quarter the company beat EPS by $0.18, which was followed by a 0.92% drop in the share price the next day.
Here's a look at Global Ship Lease's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>2.15</td>
<td>2.08</td>
<td>2.03</td>
<td>1.68</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>2.33</td>
<td>2.09</td>
<td>2.12</td>
<td>2.14</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-1.0%</td>
<td>-4.0%</td>
<td>2.0%</td>
<td>1.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1709301686_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Global Ship Lease were trading at $20.35 as of February 29. Over the last 52-week period, shares are down 0.39%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release. 
<a href="https://www.benzinga.com/quote/GSL/earnings">To track all earnings releases for Global Ship Lease visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings Outlook For Global Ship Lease

Tuesday marks the last chance for investors to receive the next dividend payout from Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>). 
<h3>What's Happening</h3>
The company announced on Monday that it would pay shareholders a quarterly dividend of 37.5 cents per share. On Wednesday, Global Ship Lease will go ex-dividend, meaning the stock will trade lower to reflect that payout. In other words, the stock will likely open 37.5 cents lower than it would have opened on any other day.
In order to be eligible to receive a company's dividend, shareholders must own the stock prior to the ex-dividend date—in this case, Wednesday. Shareholders who own GSL as of the end of Tuesday's session are eligible to receive the 37.5 cents dividend payout for every share that they own. 
According to the company, this dividend will be paid out to shareholders on March 06, 2024. Investors will then be able to either reinvest those dividends back into the stock or use the payment in some other way. 
<a href="https://www.benzinga.com/quote/GSL">Track real-time stock fluctuations for Global Ship Lease on Benzinga.</a>

Tuesday Is Your Last Chance To Buy Global Ship Lease Before The Dividend Payout

The escalating disruptions in the Red Sea, caused by attacks led by Yemen-based Houthi rebels targeting ships, have triggered a significant shift <a href="https://www.benzinga.com/topic/geopolitics">in global trade patterns.</a>
Industry data from Flexport Inc., unveiled in a <a href="https://www.bloomberg.com/news/articles/2023-12-28/red-sea-attacks-latest-half-of-container-ship-fleet-avoids-route?srnd=premium&amp;sref=TBDibEcD">Bloomberg</a> story on Thursday, reveals a startling development: around half of the container-ship fleet that typically passes through the Red Sea and Suez Canal is rerouting to avoid the area. 
This shift, involving approximately 300 vessels capable of carrying 4.3 million containers, represents about 18% of global shipping capacity.
<h2 class="wp-block-heading">The Rerouting Challenge</h2>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="700" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28152726/Suez-Map-1024x700.jpg" alt="" class="wp-image-170763" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28152726/Suez-Map-1024x700.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28152726/Suez-Map-300x205.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28152726/Suez-Map-768x525.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28152726/Suez-Map-1536x1050.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28152726/Suez-Map.jpg 1580w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Image: <a href="https://www.mapchart.net/">MapChart</a>
Rerouting around Africa adds approximately 25% more travel time compared to the usual Suez Canal route, connecting Asia and Europe. 
This not only increases operational costs for shippers but is also likely to inflate consumer prices for a wide range of products, including everyday items like clothing, food, and oil.
The Houthi, originating from Yemen, have justified their attacks as a stance against Israel, which is currently involved in a war against Hamas. 
However, their targets are not limited to vessels with direct Israeli connections, posing a broader threat to international trade. In response, a U.S.-led task force is stepping up efforts to enhance security along this crucial maritime corridor.
The data from Flexport aligns with findings from Kuehne &amp; Nagel International AG (OTCPK: KHNGY), another freight-forwarding giant. Their data, as of Wednesday, showed 364 vessels, with a capacity of 5 million TEUs, rerouting around Africa &#8211; a notable increase from 314 vessels recorded on Dec. 22. Over the past month alone, shares of Kuehne &amp; Nagel International AG have risen by 20%, reaching the highest level since October 2021. 
Clarksons Research highlights the impact of these diversions: a 40% decrease in Gulf of Aden arrivals and a 45% reduction in the Suez Canal southbound transits between Dec. 22 and 26.
<h2 class="wp-block-heading">Market Reactions: Maritime Shipping Stocks Rocket </h2>
Shares of the Danish business conglomerate&nbsp;A.P. Moeller-Maersk A/S (OTCPK: AMKBY), the world&#8217;s second-biggest container line, have risen by nearly 20% over the past two weeks. 
Another industry giant, the German Hapag-Lloyd Aktien (OTCPK: HLAGF) saw a remarkable 40% boost in its share price during the same time frame. 
The Honolulu-based Matson Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MATX#NYSE">MATX</a>) witnessed an 11% rally, similar to the one seen by Global Ship Lease Inc. New (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>). 
The SonicShares Global Shipping ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BOAT#NYSE">BOAT</a>), which tracks stocks from companies operating in the global maritime shipping industry, has soared by 10%.
Chart Courtesy of TradingView: Houthi Attacks Fueled Shipping Companies&#8217; Stocks 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28123241/BOAT_2023-12-28_17-32-22_c2924-1024x495.png" alt="" class="wp-image-170664" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28123241/BOAT_2023-12-28_17-32-22_c2924-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28123241/BOAT_2023-12-28_17-32-22_c2924-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28123241/BOAT_2023-12-28_17-32-22_c2924-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28123241/BOAT_2023-12-28_17-32-22_c2924-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28123241/BOAT_2023-12-28_17-32-22_c2924.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read now: <a href="https://www.benzinga.com/government/23/12/36328651/end-of-year-rally-for-oil-as-red-sea-tensions-drive-up-shipping-costs">End-Of-Year Rally For Oil As Red Sea Tensions Drive Up Shipping Costs</a>
Photo: Shutterstock

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Trade Turmoil: Houthi Attacks In Red Sea Ignite Rerouting Crisis, Drive Surging Shipping Stocks

On December 7, 2023, prominent figures in the container shipping industry delved into the intricacies of the market&rsquo;s supply and demand fundamentals, their own company&rsquo;s strategies, and their outlook on the segment&rsquo;s outlook during Capital Link&rsquo;s recent webinar focused on container shipping.
Highlights:
<ul>
<li>Container shipping remains a critical element of global trade, facilitating the transportation of approximately 80% of the world&#39;s manufactured goods.</li>
<li>Container market shifts after a two-year rate boom, yet rates remain above pre-pandemic levels.</li>
<li>Despite economic challenges, signs indicate strength in the container segment, especially for mid-sized and small vessels, driven by factors like a smaller order book, increased scrapping, and environmental regulations.</li>
<li>Large vs. mid-sized/small container vessels face different realities.</li>
<li>Companies in the mid-sized and small segment invest in new buildings for fleet renewal, focusing on modern vessels with advanced technology to enhance efficiency and reduce environmental impact.</li>
<li>The industry&#39;s commitment to sustainability is highlighted, with a shift towards investing in technology, innovation, and green fuels, aligning with regulatory changes and meeting evolving customer needs.</li>
<li>Container shipping companies balance shareholder rewards and fleet investment</li>
</ul>
Webinar Participants: 
Mr. Chris Robertson, Vice President of Deutsche Bank, served as the webinar&rsquo;s moderator. He was joined by:
<ul>
<li>Mr. Evangelos Chatzis, CFO of Danaos Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dac#NYSE">DAC</a>)</li>
<li>Dr. Anastasios Aslidis, CFO of Euroseas Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/esea#NASDAQ">ESEA</a>)</li>
<li>Mr. Thomas Lister, CCO &amp; Head of ESG of Global Ship Lease (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>) (The day after the webinar, it was announced that Mr. Lister will become CEO as of March 31, 2024)</li>
<li>Mr. Constantin Baack, CEO of MPC Container Ships (OSLO: MPCC)</li>
</ul>
The full webinar can be accessed <a href="https://youtu.be/2o3-kHd4GLM?si=wx87W1HEuzmVKQwx">here</a>. 
<h3>Sustained Strength In Global Container Trade </h3>
Coming down from the boom in rates in the last two years, the container market has experienced a softening, although current rates are still higher than pre-pandemic levels. Container shipping makes up a critical element of global trade. As Global Ship Lease&rsquo;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>) Chief Commercial Officer, Mr. Thomas Lister noted, around 80% of the world&rsquo;s manufactured goods are transported by containers. These goods total about 200 million TEUs, which are carried by nearly 6,000 container ships each year. Despite the weakened economy and what seems to be a large orderbook, there are signs that the container segment will remain strong, particularly for mid-sized and small vessels, where a smaller orderbook, increased scrapping, and environmental regulations will make supply and demand fundamentals more dynamic.
This incredibly complex segment is made up of liners, who connect producers of goods with consumers by arranging the transportation of goods, as Mr. Evangelos Chatzis, CFO of Danaos Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dac#NYSE">DAC</a>), noted, and owners, who provide the vessels for transportation.
Typically, liners own about 50% of the vessels they employ, and charter in the rest. Usually, they prefer to own the large vessels measuring over 15,000 TEU, while opting to charter the smaller tonnage. However, this varies from company to company, as some liners own all their tonnage, while others charter all of it from owners. Owners and liners tend to have a symbiotic relationship &ndash; as, although owners provide the vessels, liners cover fuel costs, Mr. Lister noted, and around half of the global fleet is owned by liner companies.
Liners tend to prefer owning larger vessels, which make up 45% of the global fleet, as these strategic assets operate on the major global East-West trade routes like Asia to Europe, trans-Pacific, and transatlantic trips, Mr. Lister stressed.
<h3>Midsized And Smaller Container Vessels Subject To Different Market Dynamics Than Larger Ships</h3>
Mid-sized and smaller ships, which are up to 10,000 TEUs, service intermediary trade routes, such as North-South trips. Smaller ships such as those operated by MPC Container Ships (OSLO: MPCC), which range from 1,000 - 6,000 TEU, are used for intra-regional trade routes, including intra-Asian, intra-European, and intra-South American journeys, the company&rsquo;s CEO, Mr. Constantin Baack, stated. Around 98% of the ships used in these smaller trade routes are below 5,000 TEU, he continued. These mid-sized and smaller vessels, all under 10,000 TEU, are a fundamental part of global trade, as they account for around 70% of global containerized trade volumes, GSL&rsquo;s CCO Mr. Lister noted.
All of the companies participating in the webinar are focused on mainly smaller and midsized vessels. Euroseas (Nasdaq: <a class="ticker" href="https://www.benzinga.com/stock/esea#Nasdaq">ESEA</a>) is centered on vessels ranging from 1,500 to 6,500 TEU, GSL&rsquo;s fleet ranges from 2,000 TEU to 11,000 TEU, DAC is focused on ships from 2,200 TEU up to 13,000 TEU, and MPC owns those measuring 1,000 to 6,000 TEU.
Although large, midsized, and small vessels are all operating in the container shipping industry, they experience significantly different market dynamics. While the orderbook for larger vessels is incredibly high due to the massive profits liner companies experienced during the pandemic, there are far fewer new builds on the order book in the mid-sized and smaller container shipping space.
Spurred on by significant cashflows during the pandemic, liner companies invested in new, larger vessels in order to maintain competitiveness on mainline trades, Mr. Baack stated. However, while many companies did opt to purchase new builds for the smaller ships, the orderbook is not nearly as high as it is for the larger vessels. Additionally, a number of factors such as global fleet age and environmental regulations will impact the smaller container vessels heavily. The global fleet on the water has an average of 15 to 16 years, compared to the average economic lifespan of a ship, which is around 25 years. These factors will likely prompt more recycling, taking a portion of the global fleet off the water, MPCC&rsquo;s CEO stated.&nbsp;
Mr. Lister from GSL delved into the specifics of the orderbook, noting that the order book to fleet ratio is 29%, and is weighed heavily toward very large ships. For sub-10,000 TEU ships, however, the ratio is 14%, and deliveries extend until 2027. GSL&rsquo;s CCO emphasized that there has been chronic underinvestment in mid and smaller-sized container vessels, a major cause of the aging fleet. So, although there are a number of new builds on the books for smaller vessels, net growth is minimal compared to the aging fleet for this segment.
<h3>Demand And Charter Rates</h3>
In general, economic growth drives demand in the container shipping sector. Historically, GDP growth served as a metric for container demand. Currently, the ratio of demand growth per GDP growth measures at around 0.8 to 1.2, MPCC&rsquo;s CEO stated. Currently, as the world economy stagnates, demand is low, yet rates remain higher than they were before the pandemic.
As container demand is propelled by economic growth, and the world economy is subject to volatility, the security and up-front cash flow that longer-term charters provide is quite attractive to container companies. This is compared to shorter-term spot rates, which offer the potential of incredibly high rates when the market is high but do not provide the security of long-term, predictable profit.
Although owners of smaller-sized ships usually opt for shorter-term charters, ESEA capitalized on a number of competitive opportunities during the pandemic and secured longer-term charters, Dr. Anastasios Aslidis, CFO of Euroseas Ltd. said. The company has secured significant charter coverage for 2024, with almost 70% of the new buildings covered at rates near $30,000 a day. Additionally, the company has a charter cover of 25% for 2025. For GSL, which prioritizes the forward cash flow visibility that longer-term charters provide, 80% of 2024 is covered. The company has contracted revenues of $1.8 billion with an average remaining charter term of 2.1 years. Mr. Chatzis of DAC noted that the company has a substantial contract backlog of $2.5 billion, translating to approximately $1.9 billion of EBITDA, with an average charter duration of three years. Currently, the company is 90% covered for 2024 and 60% covered for 2025, highlighting DAC&rsquo;s commitment to securing charters for medium to long durations. Opting for shorter-term charters ranging from three to twelve months, MPCC aims for a staggered charter book, avoiding having all ships open simultaneously. MPCC has fixed 67% of its operating day for 2024.
As the market is currently soft, and many tonnage providers secured high rates from liner companies when the market was booming, there has been some concern that these contracts will be renegotiated. However, Mr. Chatzis of DAC dismissed the notion, stating that in his over two decades in the industry, there has never been a contract renegotiation without exception. He clarifies that liners, despite facing challenges, are companies with real assets and business infrastructure, servicing the global logistical chain. The contractual commitments are not easily altered simply due to market fluctuations.
<h3>Investing In Fleet Renewal And Newbuilds</h3>
While companies strive to maintain competitive supply and demand dynamics, they also aim to maintain a competitive and relatively young fleet. Therefore, a number of companies in the small and midsized segment have invested in new buildings. ESEA&rsquo;s CFO noted that the company has ordered nine ships over the past few years, with two already delivered and seven more to come. The new additions to the fleet are modern vessels with advanced technology, burning 35% to 40% less fuel per day compared to similar-sized ships, Dr. Aslidis noted.&nbsp;
DAC has also invested in new vessels. The company has 10 ships on order, all ranging from 6,000 to 8,000 TEU. These new vessels are designed to be methanol-ready, equipped with scrubbers, and incorporate the latest emission-reducing technologies.
Mr. Chatzis, DAC&rsquo;s CFO, stressed the importance of fleet modernization and staying competitive through innovation and renewal. He said that, in order to meet the evolving needs of its customers, DAC believes in investing in the latest technology and aligning with developments and regulatory changes in the industry.
Although faced with an aging fleet, owners may be hesitant to invest in new buildings due to the lack of certainty surrounding green fuels and environmental technology, weighing out the benefits of these pricey investments with the risk that they may not prove advantageous.&nbsp;
GSL&rsquo;s CCO expressed caution and a preference for an &quot;active wait-and-see approach.&quot; He pointed out the challenges of choosing the right fuel among the many options like methanol, ammonia, and nuclear. Rather than purchasing new ships, Global Ship Lease focuses on retrofitting existing ships to enhance efficiency, collaborating with charterers on operational improvements in order to optimize ship performance and reduce emissions.
<h3>Capital Allocation &ndash; Shareholder Rewards Or Fleet Renewal?</h3>
After container shipping companies welcomed increased profitability during the pandemic, they were faced with the option of offering larger rewards to shareholders or investing in renewing their fleets.
Dr. Aslidis of ESEA stressed the importance of returning value to shareholders and highlighted the company&rsquo;s two-pronged approach to returning value to its shareholders. First, the company initiated a dividend payment of $0.50 per quarter, totaling $2 per year. This dividend distribution has been in place for nearly two years, and the company aims to sustain it for the foreseeable future. Secondly, ESEA has implemented a share repurchase program, aiming to maximize repurchases within the allowed liquidity constraints. This is all while ESEA seeks to balance its cost allocation, enabling it to fund its new building program, cultivate an environmentally friendly fleet, offer shareholder rewards, and maintain liquidity so that it may jump on any advantageous opportunities that may arise now that the market is weaker.&nbsp;
Similarly, Mr. Baack of MPCC stated that the company places a strong emphasis on returning capital to investors through dividends and noted that MPCC has paid out over $730 million in dividends in less than 24 months. MPCC&rsquo;s policy is to pay out 75% of its adjusted net profits as a quarterly dividend. The company is able to offer dividends while remaining well-positioned for investment opportunities due to its low leverage &ndash; it has a net debt of around $1 million per vessel. The company has also renewed its fleet, with a substantial portion of its fleet being either newly built or quite young. MPCC&rsquo;s CEO expressed his belief that cautiously adopting new technology allows the company to remain a strong partner for charterers. Generally, MPCC has invested in new technology where the locked-in EBITDA is higher than the construction Capex, providing limited risk to the company.
For DAC, paying dividends has been a high priority, Mr. Chatzis stated. The company has increased its dividend steadily over the past few years, reaching $3.2 per share, offering a yield of approximately 4.5% to 5%. The company&rsquo;s intention is to sustain a fixed dividend that is not tied to income or cash flow percentages, ensuring investors view it as a reliable component of their returns. Apart from the dividend, DAC&rsquo;s CFO noted that, as he believes the company is undervalued, DAC has begun a share buyback program to reward shareholders. So far, the company has completed a $100 million buyback and has authorized an additional $100 million program.&nbsp;
In terms of fleet renewal, DAC considers it a priority, not only for replacing aging vessels but also for enhancing the environmental performance of its fleet, which has an average age of 14 years. To this end, DAC has placed orders for methanol-ready ships, enabling the option of retrofitting for methanol use without committing the capital upfront.
Mr. Lister of Global Ship Lease highlighted the company&#39;s considered approach to capital allocation, taking risks, opportunities, and relative risk-adjusted returns into account. The company has designed its dividend of $1.50 per share, approximately 8% at the current stock price, to be sustainable throughout market cycles. GSL has also implemented a share buyback program, which started in the third quarter of 2021 and has continued quarterly.&nbsp;
Despite its recent softening from the pandemic-induced boom, the container sector remains a vital component of global trade. The market dynamics vary significantly between larger and mid-sized to small vessels, with the latter showing potential for growth amid environmental regulations and a smaller order book.
This content is for informational purposes only and is not intended to be investing advice.
This article is from an external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

General

Mid-Sized And Small Vessels Steer Container Market Growth

Global Ship Lease (GSL) has released an update. Global Ship Lease, Inc. has confirmed an agreement with Evercore Group L.L.C. to issue and sell up ...

Global Ship Lease Announces $100M Equity Distribution Deal

The shipping industry is set for significant growth with the expansion of global trade and rising shipping volumes, driven by booming e-commerce this year and technological advancements. Given this positive outlook, it could be wise to invest in solid shipping stocks such as Danaos (DAC), Global Ship Lease (GSL), and Matson (MATX), which are benefiting from global trade. Keep reading... The shipping industry shows promise with rising global demand, increased U.S. imports and e-commerce expansion, and robust container movement. Therefore, it could be a smart move to invest in fundamentally strong shipping stocks that are capitalizing on global trade, such as Danaos Corporation (<a href="https://stocknews.com/stock/DAC/">DAC</a>), Global Ship Lease, Inc. (<a href="https://stocknews.com/stock/GSL/">GSL</a>), and Matson, Inc. (<a href="https://stocknews.com/stock/MATX/">MATX</a>).
Despite challenges such as labor shortages, logistical issues, and geopolitical tensions impacting shipping routes, the industry's strong growth prospects remain strong. Advancements in technology, sustainable practices, and expanding logistics infrastructure are driving future expansion, making investing now a promising opportunity.
Meanwhile, global supply chain growth, relaxed trade policies, and innovations in cargo shipping are driving up trade in intermediate and manufactured goods, while also lowering coordination and transportation costs. The cargo shipping market is projected to expand from 11.89 billion tons in 2024 to <a href="https://www.fortunebusinessinsights.com/cargo-shipping-market-102045">14.72 billion tons by 2032</a>, with a 2.7% CAGR, due to its cost-effective and eco-friendly long-distance transport.
Moreover, advancements in seaborne transportation, container ships, and logistics services are significantly boosting global trade networks and fueling the industry's expansion. The container shipping market is projected to reach $134.03 billion by 2029, with a robust <a href="https://www.mordorintelligence.com/industry-reports/global-container-shipping-market">CAGR of 3.1%</a>, highlighting the sector's dynamic growth.
Given these favorable trends, let's take a closer look at the fundamentals of the three <a href="https://stocknews.com/category/shipping/">Shipping</a> picks, starting with number three.
Stock #3: Danaos Corporation (<a href="https://stocknews.com/stock/DAC/">DAC</a>)
Based in Piraeus, Greece, DAC and its subsidiaries own and operate containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies.
In terms of the trailing-12-month <a href="https://www.investopedia.com/terms/e/ebit.asp">EBIT</a> margin, DAC's 55.77% is 460.2% higher than the 9.96% industry average. Likewise, its 18.95% trailing-12-month Return on Common Equity is 47.9% higher than the 12.81% industry average. Additionally, its 68.09% trailing-12-month EBITDA margin is 394.8% higher than the 13.76% industry average.
During the fiscal second quarter ended June 30, 2024, DAC's operating revenues increased 2% year-over-year to $246.31 million. Its income from operations was $139.98 million for the quarter. The company's adjusted net income and adjusted EPS were $132.31 million and $6.78, respectively.
Moreover, as of June 30, 2024, DAC's cash and cash equivalents stood at $372.45 million, compared to $271.81 million as of December 31, 2023.
Analysts expect DAC's revenue for the quarter ending September 30, 2024, to increase 5% year-over-year to $251.16 million. Its EPS for the quarter ending December 31, 2024, is expected to increase 5.9% year-over-year to $7.40. DAC's stock has gained 22.8% over the past nine months to close the last trading session at $83.63.
DAC's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect solid prospects. It has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It is ranked #15 out of 41 stocks in the A-rated <a href="https://stocknews.com/category/shipping/">Shipping</a> industry. It has a B grade for Stability and Quality. To see DAC's Growth, Value, Momentum, and Sentiment ratings, <a href="https://stocknews.com/stock/DAC/">click here</a>.
Stock #2: Global Ship Lease, Inc. (<a href="https://stocknews.com/stock/GSL/">GSL</a>)
Based in Athens, Greece, GSL and its subsidiaries engage in owning and chartering containerships under fixed-rate charters to container shipping companies worldwide. As of March 11, 2024, it owned 68 mid-sized and smaller containerships, ranging from 2,207 to 11,040 twenty-foot equivalent units (TEU), with an aggregate capacity of 375,406 TEU.
In terms of the trailing-12-month EBITDA margin, GSL's 64.77% is 370.7% higher than the 13.76% industry average. Likewise, its 47.30% trailing-12-month net income margin is 668.4% higher than the 6.16% industry average. Furthermore, its 70.06% trailing-12-month gross profit margin is 123.7% higher than the 31.32% industry average.
For the fiscal second quarter ended June 30, 2024, GSL's operating revenues were $175 million, an 8% increase year-over-year. Similarly, its operating income rose 10.3% from the year-ago value to $93.84 million.
GSL's adjusted EBITDA grew 13.1% year-over-year to $122.35 million. The company's normalized net income and normalized EPS increased 17.1% and 17.7%, respectively, over the prior-year quarter, reaching $86.66 million and $2.46.
Street expects GSL's EPS for the quarter ending September 30, 2024, to increase 6% year-over-year to $2.47. Its revenue for the same quarter is expected to grow marginally year-over-year to $175.82 million. GSL surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has gained 52.6% over the past nine months to close the last trading session at $27.24.
GSL's positive outlook is reflected in its POWR Ratings. It has an overall rating of B, translating to a Buy in our proprietary rating system.
It has an A grade for Quality and a B for Value. It is ranked #4 in the same industry. <a href="https://stocknews.com/stock/GSL/">Click here</a> to see GSL's Growth, Momentum, Stability, and Sentiment ratings.
Stock #1: Matson, Inc. (<a href="https://stocknews.com/stock/MATX/">MATX</a>)
Headquartered in Honolulu, Hawaii, MATX and its subsidiaries engage in providing ocean transportation and logistics services. It operates through two segments: Ocean Transportation and Logistics.
In terms of the trailing-12-month levered FCF margin, MATX's 12.78% is 93% higher than the 6.62% industry average. Its 7.76% trailing-12-month Capex / Sales is 167% higher than the 2.91% industry average. Also, its 10.41% trailing-12-month net income margin is 69.1% higher than the 6.16% industry average.
MATX's total operating revenues for the second quarter ended June 30, 2024, increased 10.1% year-over-year to $847.40 million. The company's operating income rose 28.9% over the prior-year quarter to $124.60 million. In addition, its net income and EPS rose 40.1% and 46.5% from the year-ago values to $113.20 million and $3.31, respectively.
For the quarter ending September 30, 2024, MATX's EPS and revenue are expected to increase 37.2% and 16.9% year-over-year to $4.66 and 967.68 million, respectively. It surpassed the Street EPS estimates in each of the trailing four quarters. MATX's stock has gained 52.9% over the past year to close the trading session at $135.11.
MATX's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has a B grade for Sentiment and Quality. It is ranked #2 in the Shipping industry. To access additional grades of MATX for Growth, Value, Momentum, and Stability ratings, <a href="https://stocknews.com/stock/MATX/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
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<hr />
MATX shares were trading at $131.68 per share on Tuesday afternoon, down $4.21 (-3.10%). Year-to-date, MATX has gained 21.14%, versus a 18.45% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/matx-dac-gsl-3-shipping-container-stocks-benefiting-from-global-trade/>3 Shipping Container Stocks Benefiting From Global Trade</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Shipping Container Stocks Benefiting From Global Trade

Global Ship Lease goes ex dividend tomorrow

Global Ship Lease: Raised Dividend By 20%, Very Undervalued

Global Ship Lease Inc Deposit Shs Repr Cum Red Perp Pfd Shs Series B declares $0.5469 dividend

Global Ship Lease: EPS Outlook Improving, But Cyclical Pressures Mount

Danaos Corporation (DAC) reported strong financial results in the last reported quarter. DAC's solid industry position and strategic fleet expansion are key drivers of the company's growth prospects. So, should you buy this stock? Read more to find out... Headquartered in Piraeus, Greece, Danaos Corporation (<a href="https://stocknews.com/stock/DAC/">DAC</a>) is a leading provider of container and dry bulk vessel services in Australia, Asia, and Europe. It offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry.
The company currently has a total fleet of 72 Container Vessels ranging from 2,200 TEU to 13,100 TEU and 10 Capesize Dry Bulk Vessels. Also, it has 15 Container Vessels under construction. Further, recently, it received delivery of its first three newbuilding containerships, including one 7,165 TEU and two 8,010 TEU vessels, and it had also added six newbuilding containerships to the order book.
Moreover, in July, the company added $616 million to its contracted revenue backlog and added an extra five newbuilding containerships to its orderbook.
Danaos declared a dividend of $0.80 per share of common stock during the second quarter, which was paid on August 29, 2024, to stockholders of record as of August 20, 2024.
Danaos' CEO, Dr. John Coustas, said, "With respect to our activities in the dry bulk sector, we have recently taken delivery of all ten capesize vessels. We have been gearing up our operations to ensure the integration within our fleet during this building phase before we continue to explore opportunities to further our reach in this sector."
He added, "Our revenues from the dry bulk sector have been steadily increasing, and we look forward to further diversifying our revenues and creating upside through the spot market exposure offered by the sector. Despite our recent fleet growth, renewal, and diversification activities, our balance sheet remains very strong, with a low net debt position."
Shares of DAC have gained 11.3% over the past six months and 22.7% over the past year to close its last trading session at $78.84.
Let's look at factors that could influence DAC's performance in the upcoming months.
Stable Financials
For the second quarter that ended June 30, 2024, DAC's operating revenues rose 2% from the prior year's quarter to $246.31 million. The company's income from operations for the quarter was $139.98 million. Also, its adjusted <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> and adjusted EPS amounted to $132.31 million and $6.78 for the quarter, respectively.
Furthermore, net cash provided by operating activities increased 0.8% from the year-ago value to $154.28 million. The company's cash, cash equivalents and restricted cash stood at $372.45 million as of June 30, 2024, compared to $271.81 million as of December 31, 2023.
Impressive Historical Growth
DAC's revenue grew at a CAGR of 24.1% over the past three years, while its EBITDA improved at a CAGR of 25.6%. Its EBIT increased at a CAGR of 32.7% over the same period, while the company's normalized net income and tangible book value grew at respective CAGRs of 40.5% and 24.1% over the same time frame.
Also, the company's total assets increased at a CAGR of 8.1% over the same timeframe.
Favorable Analyst Estimates
Analysts expect DAC's revenue for the fourth quarter (ending December 2024) to come in at $259.94 million, indicating an increase of 8.8% year-over-year and the consensus EPS is expected to improve 5.9% year-over-year to $7.40 for the same period. Moreover, the company has surpassed the consensus revenue estimates in three of the trailing four quarters.
For the fiscal year (ending December 2024), the company's revenue is anticipated to grow 2.5% year-over-year to $986.93 million, while its EPS is expected to be $28.32.
High Profitability
DAC's trailing-12-month EBIT margin and net income margin of 55.77% and 58.15% are 457% and 844.7% higher than the 10.01% and 6.16% industry average, respectively. Its trailing-12-month gross profit margin of 74.67% is considerably higher than the industry average of 31.57%.
Furthermore, the stock's trailing-12-month ROCE, ROTC, and ROTA of 18.95%, 9.77%, and 14.20% are higher than the respective industry averages of 12.79%, 7.06%, and 4.95%.
Low Valuation
In terms of forward non-GAAP P/E, DAC is currently trading at 2.78x, 85.7% lower than the industry average of 19.51x. Likewise, the stock's forward EV/Sales and EV/EBIT of 1.64x and 2.83x are considerably lower than the industry average of 1.85x and 16.03x, respectively.
Additionally, the stock's forward Price/Book and Price/Cash Flow of 0.44x and 2.19x are 84.2% and 85.3% lower than the industry averages of 2.79x and 14.90x, respectively.
POWR Ratings Reflect Promise
DAC's sound fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, translating to a Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. DAC has a B grade for for Stability, in sync with its 24-month beta of 0.57. It has a B grade for Quality, consistent with its higher-than-industry profitability.
DAC is ranked #13 among the 38 stocks in the A-rated <a href="https://stocknews.com/category/shipping/">Shipping</a> industry.
Beyond what I have stated above, we have also given DAC grades for Growth, Sentiment, Momentum, and Value. Get access to all the DAC ratings <a href="https://stocknews.com/stock/DAC/">here</a>.
Bottom Line
DAC reported solid financial results in the last reported quarter. The company has a strong presence in the shipping business, and with its rapidly expanding fleet, it continues to expand its operations.
Also, with a diversified range of services and solutions and solid financial performance, the company is poised to grow in the market. Given its strong financials, accelerating profitability, lower valuation, and robust growth outlook, it could be wise to invest in this stock.
How Does Danaos Corporation (DAC) Stack Up Against Its Peers?
While DAC has an overall POWR Rating of B, investors could also check out these other stocks within the A-rated <a href="https://stocknews.com/category/shipping/">Shipping</a> industry with A (Strong Buy) or B (Buy) ratings:
Global Ship Lease Inc. Cl A (<a href="https://stocknews.com/stock/GSL/">GSL</a>)
Dynagas LNG Partners LP (<a href="https://stocknews.com/stock/DLNG/">DLNG</a>)
Overseas Shipholding Group, Inc. (<a href="https://stocknews.com/stock/OSG/">OSG</a>)
For exploring more A and B-rated Shipping stocks, <a href="https://stocknews.com/category/shipping/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
DAC shares were unchanged in after-hours trading Monday. Year-to-date, DAC has gained 11.31%, versus a 19.17% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/dac-gsl-dlng-osg-is-danaos-corp-a-must-watch-stock-in-the-shipping-sector/>Is Danaos Corp a Must-Watch Stock in the Shipping Sector?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Danaos Corp a Must-Watch Stock in the Shipping Sector?

Global Ship Lease (GSL) has released an update. Global Ship Lease, Inc., a leading independent containership charter owner, has declared a quarterl...

Global Ship Lease Announces Quarterly Dividend

DLNG

Press Releases

Global Ship Lease Declares Quarterly Dividend per Common Share for First Quarter of 2024

Global Ship Lease Reports Results for the First Quarter of 2024

Global Ship Lease Announces Introduction of Quarterly Supplemental Dividend for Common Shareholders

Global Ship Lease Declares Quarterly Dividend on its 8.75% Series B Cumulative Redeemable Perpetual Preferred Shares

Global Ship Lease Announces Results of 2024 Annual Meeting of Shareholders

Global Ship Lease Announces Credit Rating Upgrades

Global Ship Lease Announces Second Quarter 2024 Earnings Release, Conference Call and Webcast

Global Ship Lease Reports Results for the Second Quarter of 2024

Global Ship Lease Provides Update on Refinancing Activity

GSLPRB

Caravelle International Group - Ordinary Shares

Caravelle Intl Gr

Capital Clean Energy Carriers Corp. - Common Share

Capital Clean Energy

Costamare Inc. Common Stock $0.0001 par value

Costamare

Castor Maritime

Danaos

Diana Shipping

EuroDry

Euroseas

Globus Maritime

Genco Shipping & Trading Limited Ordinary Shares New (Marshall Islands)

Genco Shipping & Trading

Golden Ocean Group Limited - Common Stock

Golden Ocean Group

Himalaya Shipping

Kirby

Lakeside Holding

Matson

Navios Maritime Partners LP Common Units Representing Limited Partner Interests

Navios Maritime Partners

Pangaea Logistics Solutions Ltd. - Common Stock

Pangaea Logistics Solns

Performance Shipping Inc. - Common Shares

Performance Shipping

Pyxis Tankers

Safe Bulkers, Inc Common Stock ($0.001 par value)

Safe Bulkers

Star Bulk Carriers

Seanergy Maritime Holdings Corp. - Common Stock

Seanergy Maritime Hldgs

Toro

United Maritime Corporation - Common Stock

United Maritime

ZIM Integrated Shipping Services Ltd. Ordinary Shares

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