Euroseas Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Explore Euroseas's Fair Values from the Community and select yours

Euroseas Ltd. (NASDAQ:ESEA) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of US$57m, some 4.7% above estimates, and statutory earnings per share (EPS) coming in at US$4.29, 22% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the consensus forecast from Euroseas' two analysts is for revenues of US$228.8m in 2025. This reflects a satisfactory 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 13% to US$19.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$225.3m and earnings per share (EPS) of US$17.75 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Euroseas

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 15% to US$68.67.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Euroseas' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.1% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 2.5% per year. So it's clear that despite the slowdown in growth, Euroseas is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Euroseas' earnings potential next year. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Euroseas' revenue is expected to perform better 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 2027, which can be seen for free on our platform here.

You can also view our analysis of Euroseas' balance sheet, and whether we think Euroseas is carrying too much debt, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.