By midday, shares had added 9.7% to $3.43.
On Tuesday, the deep sea freighter said the extension would allow for continued discussions between the company and its lenders in regards to the potential restricting of its credit agreements. The amendment extends from April 15 to April 30 under which lenders and company will agree on terms of restricting and execute a binding support agreement.
Under the waiver, the lenders agree to waive until June 30 certain potential events of default, subject to Eagle Bulk's compliance with certain terms, conditions and milestones.
TheStreet Ratings team rates EAGLE BULK SHIPPING INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate EAGLE BULK SHIPPING INC (EGLE) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Marine industry. The net income has significantly decreased by 26.1% when compared to the same quarter one year ago, falling from -$29.84 million to -$37.63 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Marine industry and the overall market, EAGLE BULK SHIPPING INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for EAGLE BULK SHIPPING INC is rather low; currently it is at 23.16%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -96.53% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$1.86 million or 145.19% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio is very high at 2.01 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, EGLE has managed to keep a strong quick ratio of 2.09, which demonstrates the ability to cover short-term cash needs.
- You can view the full analysis from the report here: EGLE Ratings Report