Costamare Beats on EPS but GAAP Results Lag

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

The 10-second takeaway
For the quarter ended June 30 (Q2), Costamare met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted significantly.

Gross margins increased, operating margins improved, net margins shrank.

Revenue details
Costamare logged revenue of $96.0 million. The three analysts polled by S&P Capital IQ hoped for a top line of $95.8 million on the same basis. GAAP reported sales were 1.8% higher than the prior-year quarter's $94.3 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 $0.32. The five earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.31 for Q2 were 28% lower than the prior-year quarter's $0.43 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 65.7%, 20 basis points better than the prior-year quarter. Operating margin was 39.8%, 60 basis points better than the prior-year quarter. Net margin was 22.0%, 570 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $98.2 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $396.0 million. The average EPS estimate is $1.33.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Costamare is outperform, with an average price target of $18.75.

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