The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Seaspan beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share dropped. GAAP earnings per share expanded significantly.
Gross margins increased, operating margins shrank, net margins expanded.
Seaspan reported revenue of $169.8 million. The six analysts polled by S&P Capital IQ anticipated revenue of $168.1 million on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $155.2 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 $0.27. The eight earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. Non-GAAP EPS of $0.27 for Q4 were 13% lower than the prior-year quarter's $0.31 per share. GAAP EPS of $0.59 for Q4 were 321% higher than the prior-year quarter's $0.14 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%, 70 basis points better than the prior-year quarter. Operating margin was 48.6%, 80 basis points worse than the prior-year quarter. Net margin was 34.7%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $164.0 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $667.5 million. The average EPS estimate is $1.07.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 831 members out of 867 rating the stock outperform, and 36 members rating it underperform. Among 212 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 203 give Seaspan a green thumbs-up, and nine 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 $17.50.
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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 recommends Seaspan. The Motley Fool owns shares of 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.