Seaspan
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Seaspan met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins increased, operating margins contracted, net margins expanded.
Revenue details
Seaspan tallied revenue of $168.7 million. The five analysts polled by S&P Capital IQ predicted revenue of $169.2 million on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $154.8 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 $0.30. The seven earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS were $0.01 for Q3 versus -$2.01 per share for the prior-year quarter.
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 78.9%, 210 basis points better than the prior-year quarter. Operating margin was 49.1%, 80 basis points worse than the prior-year quarter. Net margin was 10.6%, 8,980 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $169.1 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $657.6 million. The average EPS estimate is $1.27.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 820 members out of 857 rating the stock outperform, and 37 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 187 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 $17.33.
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