The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Danaos met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased.
Margins grew across the board.
Danaos reported revenue of $128.3 million. The four analysts polled by S&P Capital IQ foresaw sales of $129.6 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $100.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.15. The four earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share on the same basis. GAAP EPS were $0.08 for Q4 compared to -$0.08 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.3%, 670 basis points better than the prior-year quarter. Operating margin was 43.7%, 470 basis points better than the prior-year quarter. Net margin was 7.1%, 1,590 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $142.4 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $596.4 million. The average EPS estimate is $0.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 481 members out of 497 rating the stock outperform, and 16 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 give Danaos a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Danaos is hold, with an average price target of $5.75.
Over the decades, small-cap stocks like Danaos have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Danaos to My Watchlist.