UPDATE 1-Paragon Shipping Q3 beats estimates

* Q3 adj EPS $0.33 vs est $0.30

* Q3 time charter rev down 8 pct to $40.1 mln

* Sees 2010 to be a challenging year

* Shares up 1 pct after the market

Nov 10 (Reuters) - Greek dry bulk carrier Paragon Shipping Inc (PRGN.O) reported better-than-expected third-quarter earnings, helped partly by lower operating expenses and increase in fleet utilization.

For the quarter, the company earned $18 million, or 40 cents per Class A share, compared with $18.9 million, or 69 cents per Class A share, a year ago.

Excluding items, it earned 33 cents a share.

Time charter revenue fell 8 percent to $40.1 million.

Analysts on average expected earnings of 30 cents a share, excluding special items, on revenue of $34.82 million, according to Thomson Reuters I/B/E/S.