Genco Shipping & Trading Limited (NYSE:GNK) to Issue $0.35 Quarterly Dividend

Key Points

• Genco declared a $0.35 quarterly dividend (stockholders of record May 18, payable May 26), which annualizes to $2.00 and implies a 5.4% yield.
• The dividend appears unsustainable from earnings alone: Genco's current payout ratio is 165.3%, and analysts' estimates ( ~$0.90 EPS next year) imply a ~222% payout ratio.
• Operationally, Genco beat expectations this quarter with $0.26 EPS vs. $0.07 expected and revenue of $114.43M (up 60.6% year‑over‑year, above the $65.73M estimate).

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) declared a quarterly dividend on Wednesday, May 6th. Stockholders of record on Monday, May 18th will be given a dividend of 0.35 per share by the shipping company on Tuesday, May 26th. This represents a c) dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date of this dividend is Monday, May 18th.

Genco Shipping & Trading has increased its dividend payment by an average of 0.3%per year over the last three years. Genco Shipping & Trading has a payout ratio of 165.3% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Genco Shipping & Trading to earn $0.90 per share next year, which means the company may not be able to cover its $2.00 annual dividend with an expected future payout ratio of 222.2%.

Genco Shipping & Trading Stock Performance

Shares of GNK stock opened at $25.72 on Thursday. The firm has a market cap of $1.12 billion, a price-to-earnings ratio of -233.80, a PEG ratio of 5.03 and a beta of 0.97. Genco Shipping & Trading has a 52-week low of $12.66 and a 52-week high of $26.46. The company has a quick ratio of 1.84, a current ratio of 2.39 and a debt-to-equity ratio of 0.21. The company's 50 day moving average is $23.18 and its 200 day moving average is $20.43.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last announced its earnings results on Wednesday, May 6th. The shipping company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.19. The business had revenue of $114.43 million for the quarter, compared to analysts' expectations of $65.73 million. Genco Shipping & Trading had a negative return on equity of 0.12% and a negative net margin of 1.28%.The business's revenue for the quarter was up 60.6% on a year-over-year basis. During the same quarter last year, the firm earned ($0.28) EPS. On average, sell-side analysts anticipate that Genco Shipping & Trading will post 1.31 EPS for the current fiscal year.

About Genco Shipping & Trading

Genco Shipping & Trading Limited is a leading global owner and operator of drybulk vessels, providing seaborne transportation services for major commodities such as iron ore, coal, grain and fertilizers. The company's fleet comprises Capesize, Panamax and Supramax vessels, which are chartered to a broad base of international charterers under both spot and period contracts. Genco's focus on modern, fuel-efficient tonnage supports reliable cargo delivery across a variety of trade routes and market conditions.

In addition to vessel ownership and operation, Genco offers ship management, maintenance and technical support services designed to maximize fleet performance and safety.

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