Does The Street Have Danaos Figured Out?

Danaos (NYSE: DAC  ) is expected to report Q4 earnings on Feb. 11. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Danaos's revenues will grow 14.8% and EPS will compress -6.7%.

The average estimate for revenue is $147.3 million. On the bottom line, the average EPS estimate is $0.14.

Revenue details
Last quarter, Danaos reported revenue of $156.3 million. GAAP reported sales were 24% higher than the prior-year quarter's $126.0 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.14. GAAP EPS were -$0.06 for Q3 against -$0.01 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 76.6%, 560 basis points better than the prior-year quarter. Operating margin was 48.7%, 380 basis points better than the prior-year quarter. Net margin was -4.5%, 380 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $577.4 million. The average EPS estimate is $0.59.

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 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 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 $4.50.

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