Is Costamare’s (CMRE) Mixed Earnings Shaping a New Investment Narrative for 2025?

• Costamare Inc. recently released its earnings for the second quarter and first half of 2025, reporting stable revenues year-on-year with second-quarter revenue at US$217.9 million and net income at US$88.69 million.
• While earnings per share from continuing operations rose compared to last year, overall net income and basic earnings per share saw a modest decline, suggesting a mixed financial picture.
• Next, we'll explore how the rise in earnings per share from continuing operations influences Costamare's overall investment narrative.

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Costamare Investment Narrative Recap

Investors in Costamare typically buy into the story of resilient, contracted revenues and strong cash flow visibility, backed by long-term charters with high utilization. The recent earnings release, featuring steady revenues and a rise in earnings per share from continuing operations but an overall dip in net income, does not appear to materially impact the company’s key short-term catalyst, strong chartered revenue streams, or its main risk, which remains exposure to shifts in charter market conditions or counterparty stability.

Among recent company developments, Costamare’s spin-off of its dry bulk business into Costamare Bulkers Holdings stands out. Although not directly related to container shipping results, this move supports management’s focus on core contracted revenue and could simplify the financial profile as investors watch for stability in earnings and charter coverage.

Yet, contrasting with headline revenue security, investors should not overlook the potential impacts if charter market conditions change or counterparties...

Read the full narrative on Costamare (it's free!)

Costamare's outlook points to $448.3 million in revenue and $285.2 million in earnings by 2028. This involves a 40.1% annual revenue decline and a $29.8 million decrease in earnings from the current $315.0 million.

Uncover how Costamare's forecasts yield a $10.15 fair value, a 7% downside to its current price.

Exploring Other Perspectives

The Simply Wall St Community's two fair value estimates for Costamare range from US$10.15 to US$36.86 per share. While community opinions differ widely, persistent charter market strength remains a key factor shaping near-term performance and is worth comparing against alternative viewpoints.

Explore 2 other fair value estimates on Costamare - why the stock might be worth over 3x more than the current price!

Build Your Own Costamare Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Costamare research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Costamare research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Costamare's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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