As you might know, Euroseas Ltd. (NASDAQ:ESEA) recently reported its annual numbers. It was an okay result overall, with revenues coming in at US$40m, roughly what analysts had been expecting. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.

View our latest analysis for Euroseas

After the latest results, the one analyst covering Euroseas are now predicting revenues of US$58.6m in 2020. If met, this would reflect a sizeable 46% improvement in sales compared to the last 12 months. Before this earnings result, analysts had predicted US$64.8m revenue in 2020, although there was no accompanying EPS estimate. The consensus seems a bit less optimistic overall, with the revenue forecasts following the latest results.

The average analyst price target fell 18% to US$6.90, with analysts clearly having become less optimistic about Euroseas's prospects following its latest earnings.

In addition, we can look to Euroseas's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. For example, we noticed that Euroseas's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow at 46%, well above its historical decline of 1.3% a year over the past five years. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 3.8% next year. So it looks like Euroseas is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from these updates is that analysts are definitely optimistic on the business, given that they've begun forecasting positive per-share earnings for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of Euroseas's future valuation.

One Euroseas broker/analyst has provided estimates out to 2020, which can be seen for free on our platform here.

It might also be worth considering whether Euroseas's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.