International Seaways recently announced its 2024 full-year earnings, with sales rising from the previous year yet revenue and net income declining, leading to a drop in EPS. Amid these announcements, which included a regular quarterly dividend of $0.12 and a special dividend of $0.58 per share, the company's stock price fell by 11% over the past week. This decline occurred alongside broader market weaknesses, with major U.S. indices like the Dow Jones, S&P 500, and Nasdaq all recording losses amid economic concerns and disappointing manufacturing data. Overall market dynamics, highlighted by investor unease over economic indicators and corporate earnings, likely compounded the pressure on International Seaways' shares. Despite an income boost from supplementary dividends, the stock’s downward trajectory reflects the market's cautious stance, as investors reassess earnings and economic outlook amid looming tariff impacts and anticipated market challenges.
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International Seaways (NYSE:INSW) experienced a robust total shareholder return of 149.74% over the last five years, reflecting its solid performance in the market. A pivotal factor in this long-term growth was the company's strategic dividend payout, marked by successive substantial supplemental dividends in 2024, enhancing investor returns. Furthermore, the addition of International Seaways to indices such as the S&P 600 Energy Sector and the S&P 1000 Index in December 2024 underscored its rising profile. These index inclusions often signal increased investor confidence and can attract more investments.
However, despite past profitability gains—evident through earnings growth of 52.6% per year over the five years ending December 2024—the most recent year marked challenges. A decline in annual revenue and net income, and significant share buybacks completed in November 2024, totaling 2.63 million shares for US$75.64 million, accentuated the company's commitment to return capital to shareholders, yet also highlighted pressures on earnings and growth potential amid industry headwinds.
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Companies discussed in this article include NYSE:INSW.
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