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Danaos Misses Where it Counts

By Seth Jayson - Updated Apr 7, 2017 at 11:53AM

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Just the facts, Fool.

Danaos (NYSE: DAC) reported earnings on Nov. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Danaos beat expectations on revenues and missed estimates on earnings per share.

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

Gross margins grew, operating margins grew, net margins dropped.

Revenue details
Danaos booked revenue of $156.3 million. The three analysts polled by S&P Capital IQ expected to see revenue of $148.2 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $126.0 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 $0.14. The two earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS were -$0.06 for Q3 compared to -$0.01 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 79.9%, 890 basis points better than the prior-year quarter. Operating margin was 48.7%, 380 basis points better than the prior-year quarter. Net margin was -4.5%, 380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $148.4 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $575.4 million. The average EPS estimate is $0.66.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 457 members out of 474 rating the stock outperform, and 17 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 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 $4.50.

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Stocks Mentioned

Danaos Corporation Stock Quote
Danaos Corporation
$78.68 (5.61%) $4.18

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