Core Viewpoint - Euroseas Ltd. has announced the extension of the charter for its older containership, M/V Aegean Express, and plans to spin off three older vessels into a new entity, Euroholdings Ltd., which aims to maximize shareholder value and create new opportunities in the shipping sector [1][2][4]. Company Announcements - The charter for M/V Aegean Express has been extended for a minimum of ten months and a maximum of twelve months at a daily rate of $16,700 [1]. - Euroseas intends to spin off three older vessels, M/V Aegean Express, M/V Diamantis P, and M/V Joanna, into Euroholdings Ltd., which has applied for listing on the NASDAQ Capital Market [2][3]. Spin-off Details - The spin-off will involve Euroseas contributing the three vessels to Euroholdings in exchange for 100% of its shares, which will then be distributed to Euroseas shareholders [3]. - A conference call is scheduled for January 7, 2025, to discuss the spin-off in detail [3][8]. Management Commentary - Aristides Pittas, Chairman and CEO, expressed satisfaction with the charter extension and the spin-off plan, emphasizing the potential to maximize the value of older vessels and enhance shareholder returns [4]. - The spin-off is expected to have minimal impact on Euroseas' overall strategy, as Euroholdings shares represent only about 5% of Euroseas' net asset value (NAV) [5]. Fleet and Operational Strategy - Euroseas plans to continue modernizing its fleet, having placed orders for 11 newbuilding vessels, with seven already delivered in 2023 and 2024 [5]. - The company believes that maintaining older vessels can generate higher returns compared to selling them, especially as the three vessels in Euroholdings are currently unlevered and under time charter employment [6]. Valuation and Market Position - Euroholdings is expected to trade at better valuation levels with smaller or no discounts to NAV compared to sector peers, providing distinct investment options for shareholders [7]. - The clean balance sheet of Euroholdings can serve as a consolidating vehicle in the shipping sector, particularly for vintage vessels, potentially creating additional long-term value for shareholders [7]. Fleet Profiles - After the spin-off, Euroholdings will operate three older vessels with a total deadweight tonnage (DWT) of 71,242 and a total capacity of 5,179 TEU [12]. - Euroseas will retain a fleet of 20 vessels with a total DWT of 774,930 and a total capacity of 61,894 TEU, along with four vessels under construction [13][14]. Company Background - Euroseas Ltd. was established in 2005 and operates in the container shipping market, managing a fleet of 23 vessels with a cargo capacity of 67,073 TEU [15][17].

Group 1: Euroseas (ESEA) - Euroseas is considered undervalued in the transportation sector, operating in dry bulk and container shipping markets [8] - Currently trading near 52-week lows at approximately $33 per share, ESEA has a forward earnings multiple of 2.2X, with fiscal 2024 EPS expected at $15.24 per share [2] - ESEA offers a significant annual dividend yield of 6.91%, surpassing the S&P 500's average of 1.2% and the Zacks Transportation-Shipping Industry average of 4.65% [14] Group 2: Janus Henderson Group (JHG) - Janus Henderson is a prominent player in the financial sector, trading near its 52-week highs at around $42 per share [15] - The company has seen a year-to-date price increase of over 40% and trades at a reasonable forward earnings multiple of 12.5X [16] - JHG is expected to achieve double-digit growth in both top and bottom lines for fiscal 2024 and FY25, with an annual dividend yield of 3.62% [15][16] Group 3: National Fuel Gas Company (NFG) - National Fuel Gas Company operates as an integrated energy company with natural gas assets in the Appalachian basin, trading under 10X forward earnings [17] - Currently trading near its 52-week peak at over $60, NFG is recognized as a dividend king, having increased its dividend for over 50 consecutive years [18] - The company has a current dividend yield of 3.41% and a payout ratio of 41%, indicating potential for future dividend increases [18] Group 4: Investment Outlook - The stocks of Euroseas, Janus Henderson, and National Fuel Gas are highlighted for their attractive valuations and generous dividends, making them appealing investment opportunities going into the new year [19] - Earnings estimate revisions for these companies have been positive, suggesting an ideal time for investment [19]

Euroseas Ltd. (ESEA) has been on a downward spiral lately with significant selling pressure. After declining 17.7% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stoc ...

The Zacks Transportation - Shipping industry has performed well in 2024 despite headwinds like lingering supply-chain disruptions, increased operational costs and geopolitical woes. The industry has benefited from an improvement in demand for goods and commodities from pandemic lows.The prevalent tensions in the Red Sea and the resultant limited container availability caused a surge in freight costs. The re-opening of the Chinese economy came as good news for the industry participants. The strong outlook fo ...

Financial Data and Key Metrics Changes - For Q3 2024, total net revenues were $54.1 million, a 6.9% increase from $50.7 million in Q3 2023, primarily due to a higher number of vessels operated [43] - Net income for Q3 2024 was $27.6 million, or $3.95 per diluted share, with adjusted net income at $27.4 million, or $3.92 per diluted share [6][7] - Adjusted EBITDA for Q3 2024 increased to $36.1 million from $34.5 million in Q3 2023 [45] - For the first nine months of 2024, total net revenues were $159.6 million, a 13.7% increase from $140.3 million in the same period of 2023 [48] Business Line Data and Key Metrics Changes - The average time-charter equivalent rate for Q3 2024 was $26,480 per day, down from $30,074 per day in Q3 2023, while the average number of vessels operated increased from 19 to 23 [55] - Total operating expenses per vessel per day decreased to $7,249 in Q3 2024 from $7,692 in Q3 2023 [56] Market Data and Key Metrics Changes - In Q3 2024, the six-month to twelve-month charter rate for 2,500 TEU container ships reached approximately $30,750 per day, more than triple the $9,270 per day recorded at the end of 2023 [19] - One-year time charter rates saw a 40% increase compared to Q2 2024, driven by tightening supply in larger vessel sizes [20] - The idle fleet stood at 0.2 million TEU, or 0.7% of the fleet, a significant decrease from 0.8 million TEU in February 2023 [23] Company Strategy and Development Direction - The company has signed contracts for the construction of two LNG-ready eco-design fuel-efficient containerships, scheduled for delivery in Q4 2027, with a total investment of approximately $60 million per vessel [10][11] - The company aims to enhance long-term shareholder value through a share repurchase program, which has been extended for another year [9] Management's Comments on Operating Environment and Future Outlook - Management noted a robust recovery in container ship charter rates across all segments, with expectations for continued strong demand driven by geopolitical factors and trade dynamics [35] - The company anticipates some headwinds in 2025 due to potential easing of disruptions in the Red Sea, but expects elevated charter rates to persist [36][37] - The energy transition within the containership sector is progressing, with growing demand for eco-friendly vessels expected to drive a premium in charter rates [38] Other Important Information - The Board of Directors declared a quarterly dividend of $0.60 per common share for Q3 2024, maintaining an annualized dividend yield of around 5.7% [8] - The company has repurchased 414,000 shares for about $8.8 million since initiating the repurchase program in May 2022 [9] Q&A Session Summary Question: What rates are required for the new vessels to achieve breakeven? - Management indicated that rates below $20,000 per day would be profitable, but they hope to achieve better rates [72] Question: What are the expectations for the vessels with expiring charters? - Management expects to fix the vessels at levels between $13,000 and $20,000 for one to one and a half years [73] Question: Why expand the new-build effort to larger class ships? - The decision is based on the analysis showing that a significant portion of the existing fleet is over 15 years old, indicating a need for more economical and environmentally friendly vessels [78] Question: What is the financing plan for the new builds? - The financing is expected to be structured with 60-65% debt and the remainder equity, with the first installment due in 2026 [72] Question: What are the expectations for the new builds' marketing? - Management is comfortable waiting until closer to delivery to secure contracts, but will consider good offers if they arise [116] Question: Is there an appetite to raise dividends in the future? - Management regularly discusses dividends and aims to provide a good yield to shareholders, with discussions planned for the next Board meeting [118]

Euroseas Ltd. (ESEA) came out with quarterly earnings of $3.92 per share, beating the Zacks Consensus Estimate of $3.77 per share. This compares to earnings of $4.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.98%. A quarter ago, it was expected that this company would post earnings of $2.49 per share when it actually produced earnings of $4.92, delivering a surprise of 97.59%.Over the last four quarters, the company has ...

ATHENS, Greece, Nov. 20, 2024 (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 and nine-month periods ended September 30, 2024. Third Quarter 2024 Financial Highlights: Total net revenues of $54.1 million. Net income of $27.6 million or $3.97 and $3.95 earnings per share basic and diluted, respectively. Adjusted net inco ...

Shares of Euroseas Ltd. (ESEA) have gained 0.6% over the past four weeks to close the last trading session at $42.37, 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 $61.33 indicates a potential upside of 44.8%.The mean estimate comprises three short-term price targets with a standard deviation of $5.13. While the lowest estimate of $57 indicates a 34.5% increase from the curren ...

Euroseas (ESEA) is scheduled to release its third-quarter 2024 earnings numbers on Nov. 20 after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Euroseas has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average beat is 28.7%.The Zacks Consensus Estimate for ESEA’s soon-to-be-reported quarter’s earnings has been revised upward by 37.1% in the past 60 days to $3.77 per shar ...

ATHENS, Greece, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today that it will release its financial results for the third quarter ended September 30, 2024, on Wednesday, November 20, 2024 after market closes in New York. On the next day, Thursday, November 21, 2024 at 8:30 a.m. Eastern Time, the Company's management will host a conference call and webcast to di ...