Euroseas Plummets Post Q3 Results, EPS Lags Consensus

Euroseas Ltd. ESEA reported third-quarter net revenue growth of 86.9% year-over-year to $23.04 million, beating the consensus of $22.57 million.
Adjusted EPS improved to $1.16 from $(0.26) in 3Q20, missing consensus of $1.39.
Total operating expenses increased to $14 million from $11.04 million last year. Vessel operating expenses amounted to $7.6 million compared to $8.2 million in 3Q20, reflecting the lower number of vessels owned and operated.
On average, 14.0 vessels were owned and operated during the quarter, earning an average time charter equivalent rate of $19,482 per day versus 16.52 vessels last year, earning $8,403 per day.
The operating income increased to $9.04 million (+602% Y/Y), and the margin expanded to 39.2% from 10.4% last year.
Euroseas generated cash from operating activities year-to-date of $26.72 million, compared to $1.7 million a year ago.
Adjusted EBITDA was $10.65 million compared to $1.24 million a year ago, and the margin expanded to 46.2% compared to 10.1% a year ago.
Euroseas held $10.24 million in cash and equivalents.
"On the supply side, while the orderbook ranks have been filling up, the majority of the deliveries are scheduled for the second half of 2023 onwards. Thus, over the next couple of years, especially during 2022, we believe that fleet growth will remain modest and provide us with opportunities to re-charter our vessels at very attractive rate levels," noted Chairman and CEO Aristides Pittas.
Price Action: ESEA shares are trading lower by 17.7% at $27.19 on the last check Tuesday.

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