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.
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 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.
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.
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.
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.
Over the decades, small-cap stocks, like Danaos have provided 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: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Danaos to My Watchlist.