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.
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 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.
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.
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.
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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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 recommend 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