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Danaos (DAC) to Report Q1 Earnings: What's in the Offing?
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Danaos Corporation (DAC - Free Report) is scheduled to release first-quarter 2022 results on May 16, after market close.
The Zacks Consensus Estimate for earnings has been stable at $9.48 over the past 60 days.
Against this backdrop, let’s examine the factors that are likely to have impacted DAC’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 and an uptick in the average daily operating cost for vessels. High fuel costs due to the escalation in oil price are also likely to have hurt the bottom-line performance in the to-be-reported quarter.
However, bullishness surrounding the containership market is a huge boon for Danaos and is likely to have boosted its top line in the soon-to-be-reported quarter. Increased fleet utilization with the gradual resumption of economic activities and an uptick in world trade are likely to get reflected in DAC’s impending results. High container rates are also likely to have boosted its top line.
What Does the Zacks Model Say?
Our proven model does not 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 an earnings beat, which is not the case here as elaborated 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 $9.48. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Danaoscurrently carries a Zacks Rank #3.
Highlights of Q4 Earnings
Danaos’ fourth-quarter 2021 earnings (excluding $1.95 from non-recurring items) of $6.10 per share beat the Zacks Consensus Estimate by 9 cents. Total revenues of $215 million increased 79.7% year over year and also surpassed the Zacks Consensus Estimate of $201.5 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Euronav NV ((EURN - Free Report) ) and Star Bulk Carriers (SBLK - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Euronav has an Earnings ESP of +10.00% and a Zacks Rank #2. EURN will announce the first-quarter 2022 results on May 12.
Optimism surrounding increased tanker demand is serving EURN well. However, high fuel costs are hurting Euronav’s bottom line.
Star Bulk Carriers has an Earnings ESP of +1.77% and a Zacks Rank of 2. SBLK will announce first-quarter 2022 results on May 24.
Improvement in travel demand is likely to have boosted Star Bulk’s voyage revenues in the March quarter. Continued fleet expansion initiatives are also expected to have contributed to SBLK’s performance in the to-be-reported quarter. However, high fuel costs are likely to have stressed SBLK’s bottom line.
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Danaos (DAC) to Report Q1 Earnings: What's in the Offing?
Danaos Corporation (DAC - Free Report) is scheduled to release first-quarter 2022 results on May 16, after market close.
The Zacks Consensus Estimate for earnings has been stable at $9.48 over the past 60 days.
Against this backdrop, let’s examine the factors that are likely to have impacted DAC’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 and an uptick in the average daily operating cost for vessels. High fuel costs due to the escalation in oil price are also likely to have hurt the bottom-line performance in the to-be-reported quarter.
However, bullishness surrounding the containership market is a huge boon for Danaos and is likely to have boosted its top line in the soon-to-be-reported quarter. Increased fleet utilization with the gradual resumption of economic activities and an uptick in world trade are likely to get reflected in DAC’s impending results. High container rates are also likely to have boosted its top line.
What Does the Zacks Model Say?
Our proven model does not 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 an earnings beat, which is not the case here as elaborated 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 $9.48. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Danaoscurrently carries a Zacks Rank #3.
Highlights of Q4 Earnings
Danaos’ fourth-quarter 2021 earnings (excluding $1.95 from non-recurring items) of $6.10 per share beat the Zacks Consensus Estimate by 9 cents. Total revenues of $215 million increased 79.7% year over year and also surpassed the Zacks Consensus Estimate of $201.5 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Euronav NV ((EURN - Free Report) ) and Star Bulk Carriers (SBLK - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Euronav has an Earnings ESP of +10.00% and a Zacks Rank #2. EURN will announce the first-quarter 2022 results on May 12.
Optimism surrounding increased tanker demand is serving EURN well. However, high fuel costs are hurting Euronav’s bottom line.
Star Bulk Carriers has an Earnings ESP of +1.77% and a Zacks Rank of 2. SBLK will announce first-quarter 2022 results on May 24.
Improvement in travel demand is likely to have boosted Star Bulk’s voyage revenues in the March quarter. Continued fleet expansion initiatives are also expected to have contributed to SBLK’s performance in the to-be-reported quarter. However, high fuel costs are likely to have stressed SBLK’s bottom line.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.