Danaos Meets on Revenues, Misses on EPS

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Danaos (NYS: DAC) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Danaos met expectations on revenues and missed expectations on earnings per share.

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

Margins grew across the board.

Revenue details
Danaos reported revenue of $128.3 million. The four analysts polled by S&P Capital IQ foresaw sales of $129.6 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $100.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.15. The four earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share on the same basis. GAAP EPS were $0.08 for Q4 compared to -$0.08 per share for the prior-year quarter.

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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 75.3%, 670 basis points better than the prior-year quarter. Operating margin was 43.7%, 470 basis points better than the prior-year quarter. Net margin was 7.1%, 1,590 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $142.4 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $596.4 million. The average EPS estimate is $0.80.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 481 members out of 497 rating the stock outperform, and 16 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 give Danaos 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 Danaos is hold, with an average price target of $5.75.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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