Danaos Goes Red

Danaos (NYSE: DAC  ) reported earnings on Feb. 11. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.

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

Revenue details
Danaos reported revenue of $151.8 million. The three analysts polled by S&P Capital IQ predicted sales of $147.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $128.3 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 $0.11. The three earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS were -$1.06 for Q4 compared to $0.08 per share for the prior-year quarter.

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 79.9%, 770 basis points better than the prior-year quarter. Operating margin was 47.5%, 380 basis points better than the prior-year quarter. Net margin was -76.7%, 8,380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $141.1 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $586.0 million. The average EPS estimate is $0.61.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 444 members out of 459 rating the stock outperform, and 15 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 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 hold, with an average price target of $4.00.

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