Euroseas Ltd. Sets Date For The Release Of Third Quarter 2024 Results, Conference Call And Webcast

The market expects Hafnia Limited (HAFN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +17.2%.

Revenues are expected to be $355.1 million, down 17% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Hafnia Limited?

For Hafnia Limited, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Hafnia Limited will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Hafnia Limited would post earnings of $0.42 per share when it actually produced earnings of $0.51, delivering a surprise of +21.43%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Hafnia Limited doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected Results

Another stock from the Zacks Transportation - Shipping industry, Euroseas Ltd. (ESEA), is soon expected to post earnings of $3.77 per share for the quarter ended September 2024. This estimate indicates a year-over-year change of -7.4%. Revenues for the quarter are expected to be $56.34 million, up 7.7% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Euroseas has been revised 2.2% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #1 (Strong Buy), makes it difficult to conclusively predict that Euroseas will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Zacks Investment Research

Euroseas Ltd. (ESEA) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This company is expected to post quarterly earnings of $3.77 per share in its upcoming report, which represents a year-over-year change of -7.4%.

Revenues are expected to be $56.34 million, up 7.7% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 2.2% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Euroseas?

For Euroseas, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination makes it difficult to conclusively predict that Euroseas will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Euroseas would post earnings of $2.49 per share when it actually produced earnings of $4.92, delivering a surprise of +97.59%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Euroseas doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected Results

Another stock from the Zacks Transportation - Shipping industry, EuroDry (EDRY), is soon expected to post loss of $0.70 per share for the quarter ended September 2024. This estimate indicates a year-over-year change of -191.7%. Revenues for the quarter are expected to be $16.57 million, up 65.5% from the year-ago quarter.

The consensus EPS estimate for EuroDry has been revised 4% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that EuroDry will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Zacks Investment Research

The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Euroseas Ltd. (ESEA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Euroseas Ltd. is a member of the Transportation sector. This group includes 135 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Euroseas Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ESEA's full-year earnings has moved 55.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ESEA has gained about 32.3% so far this year. Meanwhile, stocks in the Transportation group have lost about 0.5% on average. As we can see, Euroseas Ltd. is performing better than its sector in the calendar year.

Another stock in the Transportation sector, SkyWest (SKYW), has outperformed the sector so far this year. The stock's year-to-date return is 94.1%.

For SkyWest, the consensus EPS estimate for the current year has increased 1.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Euroseas Ltd. belongs to the Transportation - Shipping industry, a group that includes 43 individual companies and currently sits at #163 in the Zacks Industry Rank. Stocks in this group have gained about 15.9% so far this year, so ESEA is performing better this group in terms of year-to-date returns.

On the other hand, SkyWest belongs to the Transportation - Airline industry. This 31-stock industry is currently ranked #11. The industry has moved +26.6% year to date.

Going forward, investors interested in Transportation stocks should continue to pay close attention to Euroseas Ltd. and SkyWest as they could maintain their solid performance.

Zacks Investment Research

For Immediate Release

Chicago, IL – October 31, 2024 – Stocks in this week’s article are Limbach Holdings, Inc. LMB, DXP Enterprises, Inc. DXPE, Lands' End, Inc. LE and Euroseas Ltd. ESEA.

Forget Profit: Pick These 4 Stocks with Increasing Cash Flows

We are in one of the busiest weeks of the current reporting cycle, and betting on stocks based on profit numbers and earnings surprises is in trend. But looking beyond profits and figuring out a company's cash position can be far more rewarding.

In this regard, stocks like Limbach Holdings, Inc., DXP Enterprises, Inc., Lands' End, Inc. and Euroseas Ltd. are worth buying.

Even though profit is a company's goal, cash is necessary for its existence, development and success, and it is indeed a measure of resiliency. Even a profit-making company can face cash trouble and end up being bankrupt while meeting its obligations. However, a company with a solid cash flow can endure any market mayhem while enjoying flexibility in decision-making, chasing potential investments and fueling its growth engine.

Assessing a company's cash-generating efficiency has become increasingly important in today's environment, marked by global economic uncertainties, market disruptions and liquidity challenges stemming from geopolitical tensions.

To figure out this efficiency, one needs to consider a company's net cash flow. While in any business, cash moves in and out, it is net cash flow that explains how much money a company is actually generating.

If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company's liquidity, which in turn lowers its flexibility to support these moves.

However, having a positive cash flow merely does not secure a company's future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management's efficiency in regulating its cash movements and less dependency on outside financing for running its business.

Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.

Here are four out of 10 stocks that qualified for the screening:

Limbach Holdings provides building systems. The company engineers, constructs and services mechanical, plumbing, air conditioning, heating, building automation, electrical and control systems.

The Zacks Consensus Estimate for Limbach Holdings' 2024 earnings has moved 2.5% north in the past two months. LMB has a VGM Score of A.

DXP Enterprises provides innovative pumping solutions, supply-chain services, and maintenance, repair, operating and production services.

The consensus estimate for DXP Enterprises' current-year earnings has been revised 12.7% upward over the past two months. DXPE has a VGM Score of B.

Lands' End, Inc. operates as a multi-channel retailer. LE offers men's, women's and kids' apparel, outerwear and swimwear, specialty apparel, accessories, footwear and home products.

The Zacks Consensus Estimate for Lands' End's fiscal 2025 earnings has moved up by 23.3% in the past two months. LE has a VGM Score of A.

Euroseas was formed under the laws of the Republic of the Marshall Islands to consolidate the ship-owning interests of the Pittas family of Athens, Greece, which has been in the shipping business for the last 136 years. It operates in the dry cargo, dry bulk and container shipping markets.

The Zacks Consensus Estimate for Euroseas' current-year earnings has moved 13.7% north in the past two months. ESEA currently has a VGM Score of A.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2360840/forget-profit-pick-these-4-stocks-with-increasing-cash-flows

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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