ATHENS, Greece, June 18, 2025 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today its results for the three-month period ended March 31, 2025 and declared a common stock dividend. First Quarter 2025 Financial Highlights: Total net revenues of $56.3 million. Net income of $36.9 million or $5.31 and $5.29 earnings per share basic and diluted, respecti ...

Core Viewpoint - Euroseas Ltd. is set to release its financial results for the first quarter ended March 31, 2025, on June 18, 2025, before the market opens in New York [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast scheduled for June 18, 2025, at 9:30 a.m. Eastern Time [1] - Participants are encouraged to dial in 10 minutes prior to the call using specified numbers for US and international access [2] Group 2: Conference Call Details - A "call me" option is available for participants to join the conference call more quickly by entering their phone number [3] - The conference call will include a live and archived audio webcast, along with accompanying slides available on the company's website [4] Group 3: Company Overview - Euroseas Ltd. was established on May 5, 2005, and operates in the container shipping market, managing a fleet of 22 vessels with a total cargo capacity of 67,494 teu [6] - The company is managed by Eurobulk Ltd., which handles the commercial and technical operations of the vessels [6] - After the delivery of two new feeder containerships in the fourth quarter of 2027, the fleet will expand to 24 vessels with a total capacity of 76,094 teu [6]

Core Viewpoint - The Zacks Transportation - Shipping industry is currently facing significant challenges due to high inflation, tariff-related tensions, and ongoing supply-chain disruptions, compounded by geopolitical and environmental issues [1] Industry Overview - The industry is cyclical and primarily involved in the marine transportation of liquefied natural gas and crude oil under long-term, fixed-rate contracts with major energy and utility companies [3] - The shift in the e-commerce landscape due to COVID-19 has led shippers to increasingly rely on third-party logistics providers, indicating a direct correlation between the industry's health and the overall economy [3] Shipping Industry Trends - Supply-chain disruptions and high operational costs continue to negatively impact shipping stocks, with increased costs expected to persist due to ongoing issues like the Red Sea crisis [4][5] - Tariff uncertainties remain a concern, as the shipping industry is likely to experience a demand slowdown until a long-term trade deal is established, leading to potential disruptions in trade routes [6] - Environmental challenges are significant, with the shipping industry being a major contributor to greenhouse gas emissions. The International Maritime Organization aims for a 20% reduction by 2030, but current disruptions may hinder progress [7] Industry Performance - The Zacks Transportation - Shipping industry ranks 171 within the broader Zacks Transportation sector, placing it in the bottom 30% of 244 Zacks industries, indicating poor near-term prospects [8][9] - The industry's earnings estimates for 2025 have decreased by 26.6% year-over-year, reflecting analyst pessimism regarding earnings growth [10] - Over the past year, the industry has underperformed the S&P 500, declining by 33% compared to the S&P 500's increase of 11.9% [11] Current Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 6.37X, significantly lower than the S&P 500's 21.94X and the sector's 14.09X [14] Investment Opportunities - FLEX LNG Ltd. (FLNG) is highlighted for its strong demand for LNG and commitment to shareholder dividends, with a Zacks Rank of 1 and a projected 8% increase in 2026 earnings [17] - Euroseas Limited (ESEA) benefits from profitable contracts and maintains a time charter equivalent rate exceeding $30,000 per day, currently holding a Zacks Rank of 2 with a 2.1% increase in 2025 earnings estimates [20] - KNOT Offshore Partners (KNOP) specializes in shuttle tankers for crude oil transport and has consistently surpassed earnings estimates, currently holding a Zacks Rank of 2 [23]

Core Viewpoint - Euroseas Ltd. (ESEA) shares have increased by 15.2% in the past four weeks, closing at $40.58, with a potential upside of 32.3% based on Wall Street analysts' mean price target of $53.67 [1][11]. Price Targets and Analyst Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $8.50, indicating variability among analysts. The lowest estimate of $44 suggests an 8.4% increase, while the highest target of $60 implies a 47.9% surge [2][9]. - A low standard deviation in price targets indicates a high degree of agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [9]. Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about ESEA's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11][12]. - Over the past 30 days, one estimate has increased with no negative revisions, leading to a 0.6% rise in the Zacks Consensus Estimate for the current year [12]. Zacks Rank and Investment Potential - ESEA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside in the near term [13].

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals to maintain momentum in stock prices [1][2]. Group 1: Stock Performance - Euroseas Ltd. (ESEA) has shown a solid price increase of 24.9% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - ESEA has also experienced a price increase of 15.2% over the last four weeks, suggesting that the upward trend is still intact [5]. - The stock is currently trading at 85.1% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - ESEA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like ESEA that are on an uptrend supported by strong fundamentals [3]. - Investors are encouraged to explore other stocks that meet similar criteria and consider various Zacks Premium Screens tailored to different investing styles [8].

Core Viewpoint - Euroseas Ltd. has secured a new time charter contract for its intermediate containership, M/V Emmanuel P, at a gross daily rate of $38,000 for a period of 36 to 38 months, reflecting the strength of the containership market and increasing future cash flow visibility [1][2]. Company Summary - Euroseas Ltd. operates in the container shipping market, managing a fleet of 22 vessels, including 15 feeder containerships and 7 intermediate containerships, with a total cargo capacity of 67,494 teu [7]. - The company is expected to generate over $32 million in EBITDA from the new charter contract, increasing charter coverage to approximately 97% for 2025, 67% for 2026, and 40% for 2027 [2]. - The average contracted daily rate for the company will rise to about $28,700 for the remainder of 2025, over $31,000 in 2026, and over $33,000 in 2027 [2]. Fleet Profile - After the new charter of M/V Emmanuel P, the fleet profile includes various intermediate and feeder containerships with different TCE rates, highlighting the company's diverse operational capabilities [3][4]. - The M/V Emmanuel P, built in 2005, will transition from a previous charter rate of $21,000 to the new rate of $38,000 upon completion of scheduled drydock and energy-saving device installations [1][3]. Future Outlook - Euroseas is set to expand its fleet to 23 vessels with a total carrying capacity of 69,744 teu after the delivery of two new intermediate containerships in 2027 [7]. - The company’s operations are managed by Eurobulk Ltd., which is responsible for the day-to-day commercial and technical management of the vessels [6].

Core Viewpoint - Euroseas Ltd. has announced the sale of its vessel M/V Marcos V for $50 million, which is expected to generate a gain of over $8.50 million for the company [1][2]. Company Overview - Euroseas Ltd. operates in the container shipping market and was established on May 5, 2005, under the laws of the Republic of the Marshall Islands [5][6]. - The company is managed by Eurobulk Ltd., which handles the day-to-day commercial and technical management of the vessels [6]. Fleet Profile - Euroseas currently has a fleet of 22 vessels, including 15 feeder containerships and 7 intermediate containerships, with a total cargo capacity of 67,494 teu [7]. - After the sale of M/V Marcos V and the delivery of two new intermediate containerships in 2027, the fleet will consist of 23 vessels with a total capacity of 69,744 teu [7]. Financial Performance - The M/V Marcos V was acquired in Q4 2021 for $40 million and has generated significant returns, realizing more than five times the original equity investment [2]. - The vessel was under a time charter contract at a rate of $42,000 per day for three years, with an option for a fourth year at $15,000 per day, which was exercised [2].

Dividend Policy - The company suspended its quarterly dividend in Q4 2013 to focus on investment opportunities, with the last dividend of $0.15 per share paid in September 2013[129]. - The Board of Directors reinstated the common stock dividend plan in May 2022, declaring a quarterly dividend of $0.50 per share for Q1 2022, with subsequent dividends of the same amount declared for the following quarters[129]. - A quarterly dividend of $0.60 per share was declared for Q4 2023, with plans for similar dividends in the first three quarters of 2024[129]. - The declaration and payment of dividends are subject to the discretion of the Board of Directors, influenced by earnings, financial condition, and cash requirements[130]. - The company may not be able to pay dividends if it cannot obtain funds from its subsidiaries or if the Board of Directors decides against it[130]. Financial Condition and Debt - As of December 31, 2024, the company had total debt of approximately $207.26 million, with a repayment schedule requiring $37.31 million in 2025 and $15.11 million in 2026[133]. - The company expects to incur additional secured debt to finance the acquisition of newbuild vessels, which could limit funds available for other purposes[133]. - A rise in interest rates could increase financing costs, adversely affecting the company's financial condition and results of operations[134]. - The company may face challenges in obtaining additional debt financing due to the creditworthiness of its charterers and market conditions[135]. Operational Risks - The company is dependent on Eurobulk for fleet management, and any failure by Eurobulk to perform its obligations could adversely affect operations[115]. - The average age of the vessels in the fleet was approximately 11.51 years as of April 30, 2025, which may lead to increased operating costs and reduced fuel efficiency[149]. - The company may need to upgrade operations and financial systems as it expands, which could impact performance if not managed effectively[140]. - The company faces operational risks, including terrorism and piracy, which may not be fully covered by insurance and could lead to significant financial losses[159]. Market and Economic Factors - Ship values are correlated with charter rates, affecting the company's ability to acquire vessels at favorable prices during low charter rate periods[118]. - Technological advancements could reduce charter income and affect the demand and value of the company's vessels[152]. - Supply chain disruptions and changes in global trade flows due to technological developments may adversely affect demand for the company's services[153]. - Trade tariffs and economic sanctions may limit trading activities and depress shipping demand, adversely impacting the company's charterers and their ability to make timely payments[169]. Revenue Sources and Dependence - The company’s revenues are solely derived from chartering-out its vessels on voyage or time charter contracts, with no direct contractual relationship with cargo owners[174]. - Approximately 76% of the company's revenues in 2024 were derived from its top five charterers, compared to 84% in 2023 and 82% in 2022[183]. Currency and Tax Risks - The company incurs approximately 19% of its vessel operating expenses and drydocking expenses in currencies other than the U.S. dollar, which may lead to fluctuations in operating expenses and affect financial results[182]. - The company is subject to a potential 4% U.S. federal income tax on 50% of its gross shipping income attributable to transportation that begins or ends in the United States, unless it qualifies for exemption under Section 883 of the Code[193]. - The OECD's two-pillar project may increase the company's tax compliance burden and global effective tax rate, potentially impacting financial results[189]. Shareholder and Stock Information - Certain shareholders hold approximately 59.0% of the outstanding shares, allowing them to influence shareholder votes significantly[123]. - The reported closing sale price of the company's common stock was $32.99 per share on February 22, 2024, and $50.40 per share on October 2, 2024, with a closing price of $31.13 per share on April 30, 2025[204]. - The trading volume for the company's common stock has been low, which may cause it to trade at lower prices and make it difficult for shareholders to sell their shares[203]. - The company may issue additional shares of common stock in the future, with authorization to issue up to 200 million shares of common stock and 20 million shares of preferred stock[213]. Compliance and Regulatory Risks - The company is subject to risks related to compliance with the U.S. Foreign Corrupt Practices Act, which could result in fines and adversely affect its business[197]. - The company believes it is compliant with the Marshall Islands economic substance requirements, but changes in requirements could result in noncompliance and penalties[190]. - The company has been designated as a cooperating jurisdiction for tax purposes as of October 23, 2023, but future changes could harm its business[191]. Strategic Plans - The company intends to continue its fleet renewal strategy, having entered into contracts for the acquisition of two vessels scheduled for delivery in Q4 2027[200]. - The company may face challenges in managing planned growth through acquisitions, which could negatively impact cash flows and liquidity[200]. - The company has adopted anti-takeover provisions that may discourage or delay mergers or acquisitions[210]. Geopolitical Risks - The ongoing conflict in Ukraine and associated sanctions could impose additional risks that adversely affect the company's business and operations[166]. - The U.S. has implemented a price cap policy on Russian petroleum, which does not currently affect the company's operations but could have future implications[167]. - The company operates primarily outside the United States, exposing it to political and governmental instability that could adversely affect operations[178].

Company Overview - Euroseas Ltd. (ESEA) shares increased by 8.7% to close at $38.43, with notable trading volume exceeding typical levels. The stock has gained 19.6% over the past four weeks [1] - The company is expected to report quarterly earnings of $3.41 per share, reflecting a year-over-year increase of 28.2%. Revenues are projected to be $56.38 million, up 16.8% from the same quarter last year [3] Industry Context - The recent uptick in ESEA's stock price follows a 90-day agreement between the United States and China to reduce tariffs, which has raised hopes for easing global trade tensions. This is particularly beneficial for shipping stocks like ESEA, which play a crucial role in global trade [2] - Euroseas is part of the Zacks Transportation - Shipping industry, which is experiencing positive sentiment due to trade-related developments [4] Earnings Estimates - The consensus EPS estimate for Euroseas has remained unchanged over the last 30 days, indicating stability in earnings expectations. A lack of revisions in earnings estimates may affect future stock price movements [4] - In contrast, Knot Offshore (KNOP), another company in the same industry, has a consensus EPS estimate of $0.14, which represents a decline of 36.4% from the previous year [5]

Shares of Euroseas Ltd. (ESEA) have gained 18.9% over the past four weeks to close the last trading session at $32.34, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $53.67 indicates a potential upside of 66%.The mean estimate comprises three short-term price targets with a standard deviation of $8.50. While the lowest estimate of $44 indicates a 36.1% increase from the current ...