The 10-second takeaway
For the quarter ended March 31 (Q1), Seaspan met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share grew.
Gross margins shrank, operating margins dropped, net margins were steady.
Seaspan booked revenue of $164.9 million. The six analysts polled by S&P Capital IQ expected sales of $164.7 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $152.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The eight earnings estimates compiled by S&P Capital IQ averaged $0.23 per share. Non-GAAP EPS of $0.21 for Q1 were 30% lower than the prior-year quarter's $0.30 per share. GAAP EPS of $0.53 for Q1 were 3.9% higher than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.6%, 70 basis points worse than the prior-year quarter. Operating margin was 45.9%, 330 basis points worse than the prior-year quarter. Net margin was 33.7%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $166.0 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $673.7 million. The average EPS estimate is $0.95.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 824 members out of 859 rating the stock outperform, and 35 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give Seaspan a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Seaspan is hold, with an average price target of $18.14.
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