Euroseas Ltd. (NASDAQ:ESEA) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Euroseas Ltd. (NASDAQ:ESEA) had a good week, as its shares rose 4.6% to close at US$35.40 following the release of its yearly results. Euroseas reported in line with analyst predictions, delivering revenues of US$213m and statutory earnings per share of US$16.20, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Euroseas

Following the latest results, Euroseas' two analysts are now forecasting revenues of US$222.2m in 2025. This would be a credible 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to sink 11% to US$14.33 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$225.6m and earnings per share (EPS) of US$14.73 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 5.2% to US$60.67, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Euroseas' revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2025 being well below the historical 32% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 2.1% annually. 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Euroseas. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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.

Before you take the next step you should know about the 3 warning signs for Euroseas (2 don't sit too well with us!) that we have uncovered.

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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.