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Costamare Beats on EPS But GAAP Results Lag

By Seth Jayson - Updated Apr 10, 2017 at 1:41PM

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Just the facts, Fool.

Costamare (NYSE: CMRE) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Costamare missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

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

Revenue details
Costamare reported revenue of $91.5 million. The three analysts polled by S&P Capital IQ looked for revenue of $94.2 million on the same basis. GAAP reported sales were 8.5% lower than the prior-year quarter's $100.0 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 $0.29. The five earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. Non-GAAP EPS of $0.29 for Q1 were 29% lower than the prior-year quarter's $0.41 per share. GAAP EPS of $0.33 for Q1 were 18% lower than the prior-year quarter's $0.40 per share.

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 65.8%, 310 basis points worse than the prior-year quarter. Operating margin was 38.8%, 550 basis points worse than the prior-year quarter. Net margin was 27.0%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $103.8 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $443.7 million. The average EPS estimate is $1.44.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 13 members out of 16 rating the stock outperform, and three members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Costamare a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Costamare is outperform, with an average price target of $18.08.

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