Costamare (CMRE) Stock Forecast & Price Target

Costamare Inc. has demonstrated strong financial performance, achieving an adjusted EPS of $0.69 in 4Q, surpassing both consensus estimates and previous forecasts, largely driven by higher revenues and lower charter costs. The company has successfully fixed 12 containerships for over two years, adding approximately $330 million to its revenue backlog, which now totals $2.4 billion. Additionally, Costamare's liquidity remains robust at $941.6 million, with $704.6 million held in cash, reflecting effective financial management and the ability to repay its Euro bond during the quarter.

Costamare Inc is grappling with a decline in profitability attributed to a weaker dry bulk market, which has adversely affected its charter hire expenses and contributed to losses in its CBI trading platform. Despite a slight earnings per share (EPS) beat in the third quarter with an adjusted EPS of $0.68, the company reported an EBITDA of $145.7 million, falling short of both consensus expectations and internal forecasts. The persistent issues in the dry bulk segment and the overall pressures from higher interest rates, which negatively impact ship values, contribute to a negative outlook for the company’s stock.