The 10-second takeaway
For the quarter ended March 31 (Q1), Seaspan met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Gross margins grew, operating margins increased, and net margins contracted.
Seaspan booked revenue of $152.1 million. The six analysts polled by S&P Capital IQ predicted revenue of $152.4 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $121 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 $0.30. The eight earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.61 for Q1 were 15% higher than the prior-year quarter's $0.53 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 77.3%, 300 basis points better than the prior-year quarter. Operating margin was 48.9%, 160 basis points better than the prior-year quarter. Net margin was 33.7%, 810 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $167.4 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $659.5 million. The average EPS estimate is $1.19.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 810 members rating the stock outperform and 34 members rating it underperform. Among 191 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 179 give Seaspan a green thumbs-up, and 12 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 $18.29.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Seaspan. Motley Fool newsletter services have recommended creating a covered straddle position in Seaspan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.