ATHENS, Greece - Euroseas Ltd . (NASDAQ:ESEA), a shipping company specializing in container carrier vessels, has declared a common stock dividend following a profitable first quarter ending March 31, 2024.
The company reported a net income of $20.0 million, with earnings per share at $2.89 and $2.87 for basic and diluted shares, respectively. Adjusted net income for the period was $18.5 million, or $2.67 and $2.66 per share for basic and diluted shares. Euroseas also saw an 11% increase in total net revenues to $46.7 million compared to the same period last year.
During the quarter, Euroseas operated an average of 19.6 vessels and declared a quarterly dividend of $0.60 per share, payable on or about June 19, 2024, to shareholders of record on June 12, 2024. This is part of the company's ongoing dividend plan.
The company has also repurchased 400,705 of its common stock in the open market for approximately $8.2 million, as part of a share repurchase plan announced in May 2022. This plan allows for repurchases of up to $20 million.
Aristides Pittas, Chairman and CEO of Euroseas, noted that the containership markets continued to recover through mid-May 2024, driven by higher demand for vessels due to longer trade routes caused by companies avoiding the Red Sea (NYSE:SE) and the Suez Canal. He mentioned that rates for vessels similar to Euroseas' newbuildings increased by about 80% since the beginning of the year.
The company's CFO, Tasos Aslidis, highlighted the revenue increase and attributed it to the larger fleet operated in the first quarter of 2024 compared to the same period in 2023. The vessel operating expenses, excluding drydocking costs, were slightly lower in the first quarter of 2024 compared to last year.
Euroseas' focus remains on delivering its charter contract backlog, strengthening its balance sheet, and enhancing liquidity, while also rewarding shareholders with dividends. The company also prioritizes the safe and efficient operation of its fleet, reducing its carbon footprint, and evaluating investment opportunities that are accretive to earnings.
This financial summary is based on a press release statement from Euroseas Ltd.
InvestingPro Insights
Euroseas Ltd. (NASDAQ:ESEA) has shown a strong financial performance in the first quarter of 2024, which is further supported by key metrics from InvestingPro. The company boasts an impressive gross profit margin of 75.36% for the last twelve months as of Q4 2023, highlighting efficient operations and cost management. With a market capitalization of $257.85 million and a low P/E ratio of 2.24, Euroseas is trading at a low earnings multiple, suggesting that the stock may be undervalued relative to its earnings potential.
Investors will be pleased to note that Euroseas pays a significant dividend, with a yield of 6.53% as of the latest data, and has experienced a dividend growth of 20.0% over the last twelve months. These figures demonstrate the company's commitment to returning value to shareholders and its ability to do so sustainably. Additionally, the company has been profitable over the last twelve months, and analysts predict it will remain profitable this year.
For those interested in deeper financial analysis and more InvestingPro Tips, such as Euroseas' ability to cover interest payments with its cash flows and its moderate level of debt, there are 11 additional tips available on InvestingPro. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
Given the company's strategic focus on delivering its charter contract backlog, enhancing liquidity, and rewarding shareholders, these InvestingPro data points and tips provide a clearer picture of Euroseas' financial health and future prospects. The next earnings date is set for May 23, 2024, which will be a key event for investors following the company's progress.
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