Danaos Beats on Both Top and Bottom Lines

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 10, 2012 at 12:00AM
Other

Danaos (NYSE: DAC) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Danaos beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.

Margins improved across the board.

Revenue details
Danaos recorded revenue of $134.2 million. The two analysts polled by S&P Capital IQ predicted revenue of $124.4 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $99.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.16. The three earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS of $0.09 for Q1 were 80% higher than the prior-year quarter's $0.05 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 77.6%, 830 basis points better than the prior-year quarter. Operating margin was 47.3%, 530 basis points better than the prior-year quarter. Net margin was 7.0%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $144.3 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $574.3 million. The average EPS estimate is $0.68.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 471 members out of 488 rating the stock outperform, and 17 members rating it underperform. Among 139 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Danaos 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 Danaos is hold, with an average price target of $4.67.

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