Tuesday, March 12, 2019

Euroseas Ltd. (ESEA)

Attractive pure play container company.

Euroseas Ltd.
provides ocean-going transportation services worldwide. The company owns and
operates containerships that transport dry and refrigerated containerized
cargoes, including manufactured products and perishables; and drybulk carriers
that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. 

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Second quarter after EDRY spin-off
  down sequentially due to weaker container market. Excluding drydock expenses, adjusted EBITDA was $1.6 million
  below our estimate of $1.8 million and below 3Q2018 adjusted EBITDA of $1.9
  million, mainly due to lower time equivalent (TCE) rates. Versus our estimate,
  lower TCE rates (-$416/day) and higher management fees (+$80/day) more than
  offset lower opex costs (-$300/day) and G&A expenses ($150/day).
• Adjusting 2019 EBITDA estimate to
  reflect lower rates/downtime. Slight market improvement expected this year. To incorporate 4Q2018 results and the new contract fixtures,
  our new 2019 EBITDA estimate is $8.7 million (from $9.6 million). While rates
  early in the year have been expected to be lower, we expec… 

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*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.