The 10-second takeaway
For the quarter ended March 31 (Q1), Danaos beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share shrank significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Danaos logged revenue of $146.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $141.4 million on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $134.2 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 $0.13. The four earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. Non-GAAP EPS of $0.13 for Q1 were 19% lower than the prior-year quarter's $0.16 per share. GAAP EPS of $0.12 for Q1 were 33% higher than the prior-year quarter's $0.09 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 79.9%, 540 basis points better than the prior-year quarter. Operating margin was 50.0%, 270 basis points better than the prior-year quarter. Net margin was 9.2%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $140.5 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $572.1 million. The average EPS estimate is $0.47.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 438 members out of 453 rating the stock outperform, and 15 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give Danaos a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Danaos is outperform, with an average price target of $4.33.
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