International Seaways Q1 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy INSW?
Source: seekingalpha
International Seaways' stock rose by 5.01% as it crossed above the 5-day SMA, reflecting positive investor sentiment following strong earnings results.
The company reported a Q1 non-GAAP EPS of $3.90, exceeding expectations by $1.22, alongside revenues of $325.48 million, a 77.5% year-over-year increase. This robust performance highlights the company's effective management and the recovering shipping demand, contributing to its strong liquidity position of approximately $918 million.
The significant revenue growth and profitable asset disposals, including the sale of seven vessels for $216 million, further strengthen International Seaways' financial outlook, positioning it well for future operations.
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Analyst Views on INSW
Wall Street analysts forecast INSW stock price to fall
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 91.620
Low
57.00
Averages
58.00
High
60.00
Current: 91.620
Low
57.00
Averages
58.00
High
60.00
About INSW
International Seaways, Inc. is a tanker company engaged in providing energy transportation services for crude oil and petroleum products in international flag markets. The Company operates through two segments: Crude Tankers and Product Carriers. The Crude Tankers segment is made up of a fleet of VLCCs, Suezmaxes, and Aframaxes engaged in the worldwide transportation of crude oil. This segment also includes its Crude Tankers Lightering business through which it provides ship-to-ship (STS) lightering support services and full-service STS lightering to customers in the United States Gulf (USG), United States Pacific, Grand Bahama, and Panama regions. The Product Carriers segment consists of a fleet of MRs, LR1 product carriers, and an LR2 product carrier engaged in the worldwide transportation of refined petroleum products. It owns and operates a fleet of about 84 vessels, including 11 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 14 LR1s (including six new buildings), and 41 MR tankers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
International Seaways Reports Record Q1 Earnings and Dividend
- Record Net Income: International Seaways reported a record net income of $286 million for Q1, translating to $5.75 per diluted share, reflecting the company's robust performance in the current market environment and likely boosting investor confidence.
- Dividend Milestone: The company declared a quarterly dividend of $4.55 per share, coupled with a new payout ratio of 85%, indicating strong confidence in future cash flows and potentially attracting more long-term investors.
- Enhanced Liquidity: As of the end of Q1, the company reported total liquidity of $918 million, including nearly $380 million in cash and $540 million in undrawn revolver capacity, which enhances financial flexibility amid market volatility.
- Fleet Optimization Progress: The company sold 7 vessels with an average age of 17 years for $216 million in net proceeds during Q1, while the addition of new LR1 vessels is expected to further improve operational efficiency and support future growth.
See More
International Seaways Q1 Earnings Exceed Expectations
- Strong Earnings Performance: International Seaways reported a Q1 non-GAAP EPS of $3.90, beating expectations by $1.22, indicating robust profitability and management efficiency in the current market.
- Significant Revenue Growth: The company achieved revenues of $325.48 million in Q1, a 77.5% year-over-year increase, surpassing market expectations by $50.66 million, reflecting strong performance amid recovering shipping demand.
- Robust Liquidity Position: As of March 31, 2026, total liquidity stood at approximately $918 million, including $377 million in cash and $541 million in undrawn revolving credit capacity, ensuring financial flexibility for future operations.
- Profitable Asset Disposals: The company sold seven vessels with an average age of 17 years for proceeds of approximately $216 million, net of positioning, commissions, and fees, recognizing gains of $88 million in Q1, which further strengthens its financial position.
See More
International Seaways Set to Announce Q1 Earnings on May 7
- Earnings Announcement: International Seaways is set to release its Q1 2023 earnings on May 7 before market open, with a consensus EPS estimate of $2.68, reflecting a substantial year-over-year increase of 235%, which could bolster investor confidence.
- Strong Revenue Expectations: The anticipated revenue for Q1 is $274.82 million, representing a 49.8% year-over-year growth, indicating robust performance in the shipping market that may attract increased investor interest in the company's future growth potential.
- Track Record of Beating Estimates: Over the past two years, International Seaways has exceeded EPS estimates 75% of the time and revenue estimates 100% of the time, establishing a reliable performance record that enhances shareholder value and market trust.
- Upward Revision Trend: In the last three months, both EPS and revenue estimates have seen two upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's future performance, which may further drive stock price appreciation.
See More
Jefferies Initiates Bullish Coverage on Marine Transportation Stocks
- Marine Stock Ratings: Jefferies initiated bullish coverage on seven marine transportation stocks, including International Seaways (INSW), Scorpio Tankers (STNG), Navios Maritime Partners (NMM), and Star Bulk Carriers (SBLK), with price targets of $90, $90, $85, and $29 respectively, reflecting strong confidence in the sector.
- Optimistic Market Outlook: The tanker market's favorable supply-demand dynamics, bolstered by geopolitical factors and rising energy prices, were highlighted by Jefferies analyst Stephanie Moore, who noted that as long as ships absorb capacity from sanctions, long-haul demand will remain robust, keeping the sector outlook appealing.
- Strong Company Fundamentals: Moore favors International Seaways (INSW) for its balanced exposure to crude and products, and Scorpio Tankers (STNG) for its fully scrubber-fitted fleet and higher dividends, indicating competitive advantages in a volatile market.
- Strong LPG Demand: Jefferies rated Dorian LPG (LPG) as a Buy with a $42 target, believing that favorable LPG demand dynamics will keep prices elevated as long as the war continues.
See More
Rising Oil Prices Boost Tanker Companies Amid Geopolitical Tensions
- Tanker Companies Benefit: The U.S.-Iran war and the closure of the Strait of Hormuz create a favorable environment for tanker companies, with Jefferies naming International Seaways, Scorpio Tankers, and Navios Maritime Partners as top picks, reflecting strong market confidence in these firms.
- Stock Surge: Tanker stocks have surged an average of 50% in 2026, with International Seaways up 60%, driven not only by Middle Eastern conflicts but also by absorbing Venezuelan oil flows and permanent trade route shifts due to the prolonged Russia-Ukraine conflict.
- Financial Health: International Seaways' focus on debt repayment has lowered its cash breakeven point to approximately $13,000 per day, generating significant free cash flow and strong liquidity, providing ample options for shareholder returns.
- Diversification Strategy: Navios Maritime Partners boasts the largest fleet of 171 vessels among the three companies, including tankers, containerships, and dry bulk ships, with a new diversified approach offering management flexibility to invest across various segments during different cycles.
See More
Key Wall Street Rating Changes Overview
- Intel Upgrade: Evercore ISI upgraded Intel from 'In Line' to 'Outperform', citing improved execution under the new CEO, who has fixed the balance sheet and put the company back on a competitive track, which is expected to drive stock price appreciation.
- Maxlinear Upgrade: Needham upgraded Maxlinear from 'Hold' to 'Buy' after the company reported a Q1 beat and guided Q2 well above Street expectations, indicating strong demand driven by data center growth, which could enhance future revenue.
- Shake Shack Initiation: Guggenheim initiated coverage on Shake Shack with a 'Buy' rating and a $120 price target, anticipating profit growth for the burger chain, reflecting positive market sentiment regarding its future performance.
- Oracle Initiation: Wedbush initiated coverage on Oracle with an 'Outperform' rating and a $225 price target, arguing that the market is fundamentally misinterpreting the company's aggressive investment cycle as speculative risk, which could lead to stock price increases.
See More
International Seaways Reports Record Q1 Earnings and Dividend
- Record Net Income: International Seaways reported a record net income of $286 million for Q1, translating to $5.75 per diluted share, reflecting the company's robust performance in the current market environment and likely boosting investor confidence.
- Dividend Milestone: The company declared a quarterly dividend of $4.55 per share, coupled with a new payout ratio of 85%, indicating strong confidence in future cash flows and potentially attracting more long-term investors.
- Enhanced Liquidity: As of the end of Q1, the company reported total liquidity of $918 million, including nearly $380 million in cash and $540 million in undrawn revolver capacity, which enhances financial flexibility amid market volatility.
- Fleet Optimization Progress: The company sold 7 vessels with an average age of 17 years for $216 million in net proceeds during Q1, while the addition of new LR1 vessels is expected to further improve operational efficiency and support future growth.
See More
International Seaways Q1 Earnings Exceed Expectations
- Strong Earnings Performance: International Seaways reported a Q1 non-GAAP EPS of $3.90, beating expectations by $1.22, indicating robust profitability and management efficiency in the current market.
- Significant Revenue Growth: The company achieved revenues of $325.48 million in Q1, a 77.5% year-over-year increase, surpassing market expectations by $50.66 million, reflecting strong performance amid recovering shipping demand.
- Robust Liquidity Position: As of March 31, 2026, total liquidity stood at approximately $918 million, including $377 million in cash and $541 million in undrawn revolving credit capacity, ensuring financial flexibility for future operations.
- Profitable Asset Disposals: The company sold seven vessels with an average age of 17 years for proceeds of approximately $216 million, net of positioning, commissions, and fees, recognizing gains of $88 million in Q1, which further strengthens its financial position.
See More
International Seaways Set to Announce Q1 Earnings on May 7
- Earnings Announcement: International Seaways is set to release its Q1 2023 earnings on May 7 before market open, with a consensus EPS estimate of $2.68, reflecting a substantial year-over-year increase of 235%, which could bolster investor confidence.
- Strong Revenue Expectations: The anticipated revenue for Q1 is $274.82 million, representing a 49.8% year-over-year growth, indicating robust performance in the shipping market that may attract increased investor interest in the company's future growth potential.
- Track Record of Beating Estimates: Over the past two years, International Seaways has exceeded EPS estimates 75% of the time and revenue estimates 100% of the time, establishing a reliable performance record that enhances shareholder value and market trust.
- Upward Revision Trend: In the last three months, both EPS and revenue estimates have seen two upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's future performance, which may further drive stock price appreciation.
See More
Jefferies Initiates Bullish Coverage on Marine Transportation Stocks
- Marine Stock Ratings: Jefferies initiated bullish coverage on seven marine transportation stocks, including International Seaways (INSW), Scorpio Tankers (STNG), Navios Maritime Partners (NMM), and Star Bulk Carriers (SBLK), with price targets of $90, $90, $85, and $29 respectively, reflecting strong confidence in the sector.
- Optimistic Market Outlook: The tanker market's favorable supply-demand dynamics, bolstered by geopolitical factors and rising energy prices, were highlighted by Jefferies analyst Stephanie Moore, who noted that as long as ships absorb capacity from sanctions, long-haul demand will remain robust, keeping the sector outlook appealing.
- Strong Company Fundamentals: Moore favors International Seaways (INSW) for its balanced exposure to crude and products, and Scorpio Tankers (STNG) for its fully scrubber-fitted fleet and higher dividends, indicating competitive advantages in a volatile market.
- Strong LPG Demand: Jefferies rated Dorian LPG (LPG) as a Buy with a $42 target, believing that favorable LPG demand dynamics will keep prices elevated as long as the war continues.
See More
Rising Oil Prices Boost Tanker Companies Amid Geopolitical Tensions
- Tanker Companies Benefit: The U.S.-Iran war and the closure of the Strait of Hormuz create a favorable environment for tanker companies, with Jefferies naming International Seaways, Scorpio Tankers, and Navios Maritime Partners as top picks, reflecting strong market confidence in these firms.
- Stock Surge: Tanker stocks have surged an average of 50% in 2026, with International Seaways up 60%, driven not only by Middle Eastern conflicts but also by absorbing Venezuelan oil flows and permanent trade route shifts due to the prolonged Russia-Ukraine conflict.
- Financial Health: International Seaways' focus on debt repayment has lowered its cash breakeven point to approximately $13,000 per day, generating significant free cash flow and strong liquidity, providing ample options for shareholder returns.
- Diversification Strategy: Navios Maritime Partners boasts the largest fleet of 171 vessels among the three companies, including tankers, containerships, and dry bulk ships, with a new diversified approach offering management flexibility to invest across various segments during different cycles.
See More
Key Wall Street Rating Changes Overview
- Intel Upgrade: Evercore ISI upgraded Intel from 'In Line' to 'Outperform', citing improved execution under the new CEO, who has fixed the balance sheet and put the company back on a competitive track, which is expected to drive stock price appreciation.
- Maxlinear Upgrade: Needham upgraded Maxlinear from 'Hold' to 'Buy' after the company reported a Q1 beat and guided Q2 well above Street expectations, indicating strong demand driven by data center growth, which could enhance future revenue.
- Shake Shack Initiation: Guggenheim initiated coverage on Shake Shack with a 'Buy' rating and a $120 price target, anticipating profit growth for the burger chain, reflecting positive market sentiment regarding its future performance.
- Oracle Initiation: Wedbush initiated coverage on Oracle with an 'Outperform' rating and a $225 price target, arguing that the market is fundamentally misinterpreting the company's aggressive investment cycle as speculative risk, which could lead to stock price increases.
See More
