US$49.50 - That's What Analysts Think Euroseas Ltd. (NASDAQ:ESEA) Is Worth After These Results
Euroseas Ltd. (NASDAQ:ESEA) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to US$33.31 in the week after its latest full-year results. Euroseas reported US$189m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$16.52 beat expectations, being 4.9% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Euroseas after the latest results.
View our latest analysis for Euroseas
Taking into account the latest results, the consensus forecast from Euroseas' twin analysts is for revenues of US$198.1m in 2024. This reflects a reasonable 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plunge 31% to US$11.22 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$198.5m and earnings per share (EPS) of US$10.79 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 25% to US$49.50.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Euroseas' revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2024 being well below the historical 39% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 0.3% per year. So it's pretty clear that, while Euroseas' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Euroseas following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for Euroseas (2 can't be ignored!) that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
