🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Danaos (DAC) to Report Q1 Earnings: What's in the Offing?

Published 05/05/2021, 12:19 AM
Updated 07/09/2023, 06:31 AM
EGLE
-
DAC
-
CMBT
-

Danaos (NYSE:DAC) Corporation DAC is scheduled to release first-quarter 2021 results on May 10, after market close.

The shipping company has a stellar surprise record as its earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 9.2%.

Danaos Corporation Price and EPS Surprise

Danaos Corporation Price and EPS Surprise

Danaos Corporation price-eps-surprise | Danaos Corporation Quote

Moreover, the Zacks Consensus Estimate for first-quarter earnings has been revised 1.41% upward over the past 60 days.

Against this backdrop, let’s examine the factors that are likely to have impacted the company’s March-quarter performance.

We expect Danaos’ first-quarter bottom-line performance to have been hurt by higher vessel operating expenses, mainly due to the increase in the average number of vessels in its fleet. Moreover, coronavirus-induced supply-chain disruptions are likely to dent this shipping company’s results.

However, the bullishness surrounding the containership market is likely to have aided the first-quarter performance of Danaos. Notably, the containership market is being driven by increased manufacturing activities in Asia in addition to inventory restocking and greater demand for goods rather than services in Europe and the United States.

The already high container rates further moved north following the Suez Canal crisis in March-end since multiple containership vessels were either stuck or diverted around South Africa. This, in turn, induced elimination or supply shortage of ships and containers. The Suez-canal congestion is likely to partly aid the first-quarter results as the incident took place toward the end of March.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Danaos this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here as shown below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Danaos has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of $2.87. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Danaos carries a Zacks Rank #3, currently.

Highlights of Q4 Earnings

In the last reported quarter, Danaos’ earnings (excluding 22 cents from non-recurring items) of $2.29 per share edged past the Zacks Consensus Estimate of $2.27. Moreover, the bottom line increased13.9% on a year-over-year basis. Quarterly revenues of $119.6 million too surpassed the Zacks Consensus Estimate of $115.5 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping (NASDAQ:EGLE) EGLE, Euronav (NYSE:EURN) NV EURN and GasLog LP GLOG as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Eagle Bulk has an Earnings ESP of +64.52% and a Zacks Rank of 1, currently.

Euronav has an Earnings ESP of +7.14% and a Zacks Rank #3 at present.

GasLog presently has an Earnings ESP of +20.69% and a Zacks Rank #2.

Each of the companies will release first-quarter 2021 results on May 6.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Eagle Bulk Shipping Inc. (EGLE): Free Stock Analysis Report

GasLog LP. (GLOG): Free Stock Analysis Report

Danaos Corporation (DAC): Free Stock Analysis Report

Euronav NV (EURN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.