Market Overview - Wall Street reached record-high levels despite a turbulent first half of 2025, with the second quarter being the best for U.S. stocks in the past year due to expectations of key trade deals and reduced recession fears [1] - The Federal Reserve indicated two more cuts in the benchmark lending rate for the second half of the year, contributing to a continued bull run in July, with the S&P 500 and Nasdaq Composite hitting all-time highs [2] Stock Performance - A selection of stocks has shown significant price strength, particularly those on a recent bull run, indicating potential for continued momentum [3] - Notable stocks include RF Industries Ltd. (RFIL), Legacy Education Inc. (LGCY), Primoris Services Corp. (PRIM), Allot Ltd. (ALLT), and Euroseas Ltd. (ESEA) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks and greater than 10% over the last 12 weeks to indicate sustained momentum [5] - Stocks should have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1, indicating strong future performance expectations [6] - Stocks must be trading at a minimum price of $5 and be within 85% of their 52-week high to ensure they are strong performers [7] Individual Stock Highlights - **RF Industries Ltd. (RFIL)**: Stock surged 74% in four weeks, with expected earnings growth over 100% for the current fiscal year [8][10] - **Legacy Education Inc. (LGCY)**: Stock price increased by 29.6% in four weeks, with an expected earnings growth rate of 0.8% [12] - **Primoris Services Corp. (PRIM)**: Stock climbed 23.4% in four weeks, with an expected earnings growth rate of 15.8% [14] - **Allot Ltd. (ALLT)**: Stock surged 19.8% in four weeks, with expected earnings growth over 100% [17] - **Euroseas Ltd. (ESEA)**: Stock advanced 12.6% in four weeks, with an expected earnings growth rate of 1.2% [19]

Group 1 - Euroseas has significantly outperformed the S&P 500 since late November 2021, indicating strong market performance [1] - The company is covered by an analyst with over five years of experience in equities, focusing on growth and income stocks with high expected return potential [1] - The investing group Wheel of Fortune provides a platform for actionable trading ideas across various asset classes, sectors, and industries, aiming to educate its community of subscribers [1] Group 2 - No stock or derivative positions are held by the analyst in any mentioned companies, ensuring an unbiased perspective [2] - The article expresses the author's opinions without any compensation from the companies discussed, reinforcing the independence of the analysis [2] - Seeking Alpha clarifies that past performance does not guarantee future results, emphasizing the need for individual assessment of investment suitability [3]

Company Overview - Euroseas Ltd. is an owner and operator of container carrier vessels, providing seaborne transportation for containerized cargoes [1] - The company was established on May 5, 2005, under the laws of the Republic of the Marshall Islands, consolidating the ship-owning interests of the Pittas family, which has been in the shipping business for over 140 years [4] - Euroseas trades on the NASDAQ Capital Market under the ticker ESEA and operates in the container shipping market [4] Fleet and Operations - Euroseas operates a fleet of 22 vessels, which includes 15 Feeder containerships and 7 Intermediate containerships, with a total cargo capacity of 67,494 TEU [4] - The company employs its vessels on spot and period charters and through pool arrangements [4] - After the delivery of two intermediate containership newbuildings in the fourth quarter of 2027, the fleet will consist of 24 vessels with a total carrying capacity of 76,094 TEU [4] Shareholder Information - An annual meeting of shareholders is scheduled for July 23, 2025, at 11:00 a.m. at the offices of Seward & Kissel LLP in Washington, DC [1] - Shareholders of record as of June 25, 2025, are entitled to receive notice of and vote at the Annual Meeting [2] - The company's Proxy Statement and annual report on Form 20-F, which includes audited financial statements for the fiscal year ended December 31, 2024, are available on the company's website [2]

Technical Analysis - Euroseas Ltd. (ESEA) has reached a significant support level and is considered a good pick for investors from a technical perspective due to a "golden cross" formation, where the 50-day simple moving average has broken above the 200-day moving average [1] - A golden cross indicates a potential bullish breakout, characterized by a short-term moving average crossing above a longer-term moving average, typically the 50-day and 200-day [1][2] Price Movement - ESEA shares have increased by 22.3% over the past four weeks, indicating strong upward momentum [3] - The company currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting a favorable outlook for potential breakout [3] Earnings Outlook - ESEA has experienced one upward revision in earnings estimates over the past 60 days, with no downward revisions, leading to an increase in the Zacks Consensus Estimate for the current quarter [3][4] - The positive earnings outlook, combined with the technical factors, suggests that investors may want to monitor ESEA for further gains in the near future [4]

Group 1 - Euroseas Ltd. (ESEA) shares have increased by 18.4% over the past four weeks, closing at $44.78, with a mean price target of $56 indicating a potential upside of 25.1% [1] - The average price targets range from a low of $51.00 to a high of $60.00, with a standard deviation of $4.58, suggesting a relatively high agreement among analysts [2] - Analysts show strong agreement on ESEA's ability to report better earnings than previously predicted, which supports the expectation of an upside [4][11] Group 2 - The Zacks Consensus Estimate for ESEA's current year earnings has increased by 4.4% over the last 30 days, with no negative revisions [12] - ESEA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting the extent of gains, they can indicate the direction of price movement, which is a useful guide [14]

Euroseas Ltd. Q1 2025 Earnings Release [First Quarter 2025 Financial Highlights](index=3&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Euroseas reported strong Q1 2025 financial results, with increased revenues and net income, a declared dividend, and continued share repurchases Q1 2025 Key Financial Metrics | Metric | Value ($) | Per Share (Basic) ($) | Per Share (Diluted) ($) | | :--- | :--- | :--- | :--- | | Total Net Revenues | 56.3 million | N/A | N/A | | Net Income | 36.9 million | 5.31 | 5.29 | | Adjusted Net Income | 26.2 million | 3.76 | 3.76 | | Adjusted EBITDA | 37.1 million | N/A | N/A | | Quarterly Dividend | 0.65 per share | N/A | N/A | - The company operated an average of **23.71 vessels** during Q1 2025, achieving an average time charter equivalent (TCE) rate of **$27,563 per day**[10](index=10&type=chunk) - Completed the spin-off of three subsidiaries, including two older vessels, into the independently operating Euroholdings Ltd. (NASDAQ: EHLD) on March 17, 2025[10](index=10&type=chunk) - Agreed to sell the M/V Marcos V for **$50 million**, with delivery in October 2025, expecting a gain exceeding **$8.50 million**, or **$1.20 per share**[10](index=10&type=chunk) - Since May 2022, the company has repurchased **463,074 common shares** for approximately **$10.5 million** under its **$20 million** share repurchase plan[10](index=10&type=chunk) [Management Commentary](index=4&type=section&id=Management%20Commentary) Management highlighted continued strength in the containership market, securing high charter coverage, while focusing on fleet modernization and shareholder returns - **CEO Commentary:** The containership market showed further strength in Q1 2025, with notable rate increases in smaller and larger feeder segments. The company has secured almost **100% charter coverage** for 2025 and over **65% for 2026**[12](index=12&type=chunk) - **CEO Outlook:** Key challenges include the high overall orderbook and potential Suez Canal transits resuming. However, fundamentals for feeder and intermediate containerships remain favorable due to historically low orderbooks and an older fleet profile in these segments[13](index=13&type=chunk) - **CEO Strategy:** The company is modernizing its fleet, having transferred its two oldest ships to the Euroholdings spin-off. It maintains a **$0.65 quarterly dividend** and continues its share buyback program due to shares trading at a discount to NAV[14](index=14&type=chunk) - **CFO Commentary:** Q1 2025 revenues increased by approximately **20% YoY**, driven by a larger fleet (average of **23.68 vessels** vs. **19.60 in Q1 2024**)[14](index=14&type=chunk) - **CFO Commentary:** Total daily vessel operating expenses decreased to **$6,676** in Q1 2025 from **$7,276** in Q1 2024, attributed to the lower operating costs of newbuild vessels[15](index=15&type=chunk) - **CFO Commentary:** As of March 31, 2025, the company had **$244.0 million** in outstanding bank debt and approximately **$95.5 million** in cash. Scheduled debt repayments for the next 12 months are about **$30.7 million**[16](index=16&type=chunk) [First Quarter 2025 Financial Results](index=5&type=section&id=First%20Quarter%202025%20Financial%20Results) Q1 2025 net revenues grew **20.6%** to **$56.3 million**, with net income significantly increasing to **$36.9 million**, driven by fleet expansion and higher interest costs Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenues ($M) | 56.3 | 46.7 | +20.6% | | Net Income ($M) | 36.9 | 20.0 | +84.5% | | Adjusted EBITDA ($M) | 37.1 | 24.6 | +50.8% | | Average Vessels (count) | 23.68 | 19.60 | +4.08 vessels | | TCE Rate ($/day) | 27,563 | 27,806 | -0.9% | | Basic EPS ($) | 5.31 | 2.89 | +83.7% | | Adjusted Basic EPS ($) | 3.76 | 2.67 | +40.8% | - Vessel operating expenses rose to **$12.3 million** from **$11.4 million** in Q1 2024, due to the larger fleet size[19](index=19&type=chunk) - Depreciation expense increased to **$8.0 million** from **$5.4 million** in Q1 2024, also due to the increased number of vessels[19](index=19&type=chunk) - Interest and other financing costs increased to **$3.9 million** in Q1 2025 from **$1.8 million** in Q1 2024, reflecting a higher amount of debt[22](index=22&type=chunk) [Fleet Profile and Employment](index=6&type=section&id=Fleet%20Profile%20and%20Employment) As of June 18, 2025, Euroseas' fleet comprises 22 operating container carriers totaling **67,494 TEU**, with two additional vessels under construction and one vessel scheduled for sale Fleet Composition (as of June 18, 2025) | Vessel Category | Count (vessels) | Total DWT | Total TEU | | :--- | :--- | :--- | :--- | | **Operating Fleet** | | | | | Intermediate Carriers | 7 | - | - | | Feeder Carriers | 15 | - | - | | **Total Operating** | **22** | **859,330** | **67,494** | | **Vessels Under Construction** | | | | | Intermediate Carriers | 2 | 110,400 | 8,600 | | **Total Future Fleet** | **24** | **969,730** | **76,094** | - The vessel M/V Marcos V has been sold and is scheduled for delivery to the buyer in October 2025[27](index=27&type=chunk) - The company has two **4,300 TEU** Intermediate newbuildings scheduled for delivery in the fourth quarter of 2027[26](index=26&type=chunk)[57](index=57&type=chunk) [Summary Fleet Data and Operational Metrics](index=7&type=section&id=Summary%20Fleet%20Data%20and%20Operational%20Metrics) In Q1 2025, average vessels increased to **23.68**, with high **99.2%** fleet utilization and stable TCE rates, while daily vessel operating expenses decreased to **$6,676** due to newer vessels Q1 2025 vs Q1 2024 Operational Data | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average number of vessels (count) | 23.68 | 19.60 | | Available days for fleet (days) | 2,111.2 | 1,705.4 | | Fleet utilization (%) | 99.2% | 99.7% | | Time charter equivalent rate (TCE) ($/day) | 27,563 | 27,806 | | Vessel operating expenses (daily) ($/day) | 6,676 | 7,267 | | General and administrative expenses (daily) ($/day) | 835 | 696 | [Financial Statements](index=10&type=section&id=Financial%20Statements) The unaudited consolidated financial statements for Q1 2025 detail strong financial performance, with increased net income, growth in assets and liabilities, and robust cash flow from operations [Consolidated Condensed Statements of Operations](index=10&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) For Q1 2025, net revenues reached **$56.3 million**, with operating income surging to **$40.5 million** due to a vessel sale gain, resulting in **$36.9 million** net income and **$5.31** basic EPS Unaudited Consolidated Condensed Statements of Operations (in USD) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net revenues | 56,346,095 | 46,718,374 | | Total operating expenses, net | 15,861,892 | 26,328,438 | | Operating income | 40,484,203 | 20,389,936 | | Net income | 36,914,994 | 20,002,174 | | Earnings per share, basic | $5.31 | $2.89 | [Consolidated Condensed Balance Sheets](index=11&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of March 31, 2025, total assets grew to **$648.8 million**, driven by increased vessel value, while total liabilities rose to **$271.5 million** due to higher long-term debt, and shareholders' equity reached **$377.3 million** Consolidated Condensed Balance Sheet Highlights (in USD) | Line Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 88,333,158 | 73,739,504 | | Vessels, net | 524,227,256 | 443,386,898 | | **Total Assets** | **648,753,118** | **591,218,957** | | **Liabilities & Equity** | | | | Long-term debt, current portion | 30,301,932 | 36,930,532 | | Long-term debt, net of current | 211,541,840 | 168,473,386 | | **Total Liabilities** | **271,493,939** | **228,269,125** | | **Total Shareholders' Equity** | **377,259,179** | **362,949,832** | [Consolidated Condensed Statements of Cash Flows](index=12&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operating activities was strong at **$41.2 million**, with **$43.8 million** used in investing, and **$17.5 million** provided by financing, leading to a **$14.9 million** increase in total cash to **$95.5 million** Consolidated Condensed Statement of Cash Flows Highlights (in USD) | Cash Flow Category | Three Months Ended March 31, 2025 | | :--- | :--- | | Net cash provided by operating activities | 41,225,366 | | Net cash used in investing activities | (43,804,649) | | Net cash provided by financing activities | 17,457,459 | | **Net increase in cash** | **14,878,176** | | **Cash at end of period** | **95,544,503** | [Reconciliation of Non-GAAP Financial Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides reconciliations for non-GAAP measures, with Q1 2025 Adjusted EBITDA at **$37.1 million** and Adjusted Net Income at **$26.2 million**, derived by adjusting GAAP net income for specific non-cash and non-recurring items [Reconciliation of Adjusted EBITDA to Net Income](index=13&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20to%20Net%20Income) Adjusted EBITDA for Q1 2025 was **$37.1 million**, up from **$24.6 million** in Q1 2024, reconciled from net income by adjusting for interest, depreciation, derivative gains/losses, vessel sale gains, and time charter amortization Adjusted EBITDA Reconciliation (in USD) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | 36,914,994 | 20,002,174 | | Interest and other financing costs, net | 3,397,850 | 1,252,760 | | Vessel depreciation | 8,045,067 | 5,441,337 | | Gain on sale of vessel | (10,230,210) | - | | (Gain) / loss on interest rate swap | 173,386 | (863,006) | | Amortization of below market time charters | (1,218,240) | (1,231,776) | | **Adjusted EBITDA** | **37,082,847** | **24,601,489** | [Reconciliation of Adjusted Net Income to Net Income](index=14&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20to%20Net%20Income) Adjusted Net Income for Q1 2025 was **$26.2 million** (Adjusted EPS of **$3.76**), compared to **$18.5 million** in Q1 2024, primarily adjusted for vessel sale gains and unrealized derivative impacts Adjusted Net Income Reconciliation (in USD) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | 36,914,994 | 20,002,174 | | Unrealized (gain) / loss on derivative | 238,431 | (763,350) | | Gain on sale of vessel | (10,230,210) | - | | Other adjustments | (729,928) | (734,714) | | **Adjusted net income** | **26,193,287** | **18,504,110** | | **Adjusted earnings per share, basic** | **$3.76** | **$2.67** |

Euroseas (ESEA) Q1 2025 Earnings Call June 18, 2025 09:30 AM ET Company Participants Aristides Pittas - ChairmanAnastasios Aslidis - CFO & Treasurer Conference Call Participants Mark Reichman - Senior Research AnalystC.K. Poe Fratt - MD - Equity Research & Senior Transportation Analyst Operator Thank you for standing by, ladies and gentlemen, and welcome to the Eurasys Conference Call on the First Quarter twenty twenty five Financial Results. We have with us Mr. Aristides Petus, Chairman and Chief Executive ...

Financial Data and Key Metrics Changes - For Q1 2025, the company reported total net revenues of $56.3 million, a 20.6% increase from $46.7 million in Q1 2024 [35] - Net income for the period was $36.9 million, compared to $20 million in Q1 2024 [36] - Adjusted EBITDA for Q1 2025 was $37.1 million, up from $24.6 million in the same period last year [37] - Basic and diluted earnings per share were $5.31 and $5.29 respectively, compared to $2.89 and $2.87 in Q1 2024 [37] Business Line Data and Key Metrics Changes - The company operated an average of 23.68 vessels in Q1 2025, compared to 19.6 vessels in Q1 2024 [39] - The daily operating expenses were $7,511 per vessel per day, down from $7,963 in the previous year [39] - The cash flow breakeven rate was $13,062 per vessel per day, significantly lower than $17,171 in Q1 2024 [39] Market Data and Key Metrics Changes - The average one-year time charter rate for 2,500 TEU containerships reached approximately $35,000 per day, significantly above historical averages [20] - Average charter rates increased by 10% for future vessels and by 4% for Panamax and post-Panamax vessels compared to Q4 2024 [15] - The idle fleet, excluding vessels under repair, stood at 19 million TEU, representing 6.6% of the global fleet [17] Company Strategy and Development Direction - The company completed a spin-off of Europoading, allowing it to focus on its younger, more efficient fleet and growth strategy [12] - The fleet consists of 22 vessels with an average age of under 13 years, and the company expects to receive two new intermediate containers in Q4 2027 [13] - The company aims to secure long-term charters to enhance cash flow visibility and reduce exposure to market volatility [10] Management's Comments on Operating Environment and Future Outlook - The management highlighted heightened geopolitical risks and shifting global trade dynamics as challenges for 2025 [16] - The company anticipates that the market will remain strong and resilient throughout 2025, despite potential downward pressure on charter rates [29] - The management expressed concerns about energy conditions and their impact on markets, while also noting the increasing demand for eco-efficient vessels [31] Other Important Information - The company declared a quarterly dividend of $0.65 per share for Q1 2025, payable on July 16, 2025 [7] - The company has repurchased 463,000 shares for approximately $10.5 million since initiating its repurchase plan [7] - The net asset value per share was estimated to be between $74 and $75, indicating a significant upside potential compared to the current trading price [43] Q&A Session Summary Question: What is the latest estimate for scheduled hire days for the remainder of the year? - Management indicated that the estimated stoppage time for the vessel undergoing dry dock is 25 days, and no incremental days are expected for the rest of the fleet [51][52] Question: Which assumption has the most bearing on the conclusion regarding downward pressure on charter rates? - Management noted that rerouting of ships is a significant negative factor as it reduces ton miles, while tariffs and global trade drops can also negatively impact the market [54][55] Question: Will total daily vessel operating expenses decline further with the incorporation of new builds? - Management suggested that as the fleet composition becomes more favorable with new builds, the blended average operating expenses might decrease slightly, but a 2% increase in operating expenses is budgeted [58]

Core Viewpoint - Euroseas Ltd. reported quarterly earnings of $3.76 per share, exceeding the Zacks Consensus Estimate of $3.35 per share, and showing a significant increase from $2.66 per share a year ago, indicating strong financial performance [1][2]. Financial Performance - The company achieved revenues of $57.98 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.19% and up from $48.29 million in the same quarter last year [2]. - Euroseas has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2]. Stock Performance - Euroseas shares have increased approximately 24.4% since the beginning of the year, significantly outperforming the S&P 500, which gained only 1.7% [3]. Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $3.38 for the coming quarter and $14.50 for the current fiscal year, alongside expected revenues of $55.73 million and $230.62 million respectively [7]. - The estimate revisions trend for Euroseas is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]. Industry Context - The Transportation - Shipping industry, to which Euroseas belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges ahead [8].

Forward-Looking Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous potential risks and uncertai ...