What drove CMRE's surprising EPS growth in Q3 2024?

Costamare Inc. (CMRE) reported an EPS of $0.63 for Q3 2024, which was a surprise given the company's previous performance and market conditions. Several key factors contributed to this unexpected growth: 1. **Strong Financial Performance in Q2 2024**: Costamare's net income for Q2 2024 was $91.3 million, with a diluted EPS of $0.77. This robust performance set a solid foundation for the subsequent quarter. 2. **Strategic Fleet Management**: The company has achieved full employment of its containership fleet for the year, with projected revenues of $2.4 billion over 3.5 years. This strategic fleet management has ensured consistent revenue streams. 3. **New Charter Agreements**: Costamare has entered into more than 25 chartering agreements for its owned dry bulk fleet since Q1 2024, indicating a diversified and robust demand for its services. These new charter agreements have likely contributed to the increased revenue and profitability. 4. **Vessel Acquisitions and Disposals**: The company has acquired larger vessels to renew and upscale its fleet, which has likely improved operational efficiency and profitability. Concurrently, the sale of certain vessels has provided additional cash flow, which has been used to prepay debt and redeem preferred stock. 5. **Debt Financing and Liquidity**: Costamare has refinanced existing indebtedness, maintaining strong liquidity with over $1.1 billion available. This financial flexibility has allowed the company to navigate market challenges and capitalize on opportunities. 6. **Market Conditions and Red Sea Tensions**: The ongoing Red Sea tensions have led to increased freight costs, benefiting Costamare as a result of its focus on dry bulk shipping. This geopolitical situation has created a favorable market environment for the company's services. In summary, Costamare's EPS growth in Q3 2024 can be attributed to a combination of its strategic financial decisions, effective fleet management, and favorable market conditions. These factors have collectively contributed to the company's robust financial performance and growth.