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Danaos (DAC) to Report Q3 Earnings: What's in the Offing?

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Danaos Corporation (DAC - Free Report) is scheduled to release third-quarter 2019 results on Nov 4, after market close.

The Zacks Consensus Estimate for third-quarter earnings has been stable at $2.14 in the past 90 days. Given this backdrop, let’s delve into the factors that might have influenced the company’s performance in the September quarter.

As was the case in the first two quarters, fleet utilization is expected to have been high in the third quarter as well. The company's third-quarter results might reflect this uptrend. However, operating revenues in the September quarter are likely to have been dented due to the re-chartering of some of its vessels that concluded long-term charters (in the last twelve months) and were subsequently re-deployed at lower spot rates.

Moreover, the company might have incurred high vessel operating expenses in the quarter due to factors like high repair and maintenance costs.  Also, increased professional fees are expected to have induced elevated general & administrative costs in the third quarter. Consequently, the bottom line is expected to reflect the impact of these increased costs in the to-be-reported results.

Danaos Corporation Price and EPS Surprise

 

Danaos Corporation Price and EPS Surprise

Danaos Corporation price-eps-surprise | Danaos Corporation Quote

Highlights of Q2 Earnings

In the last reported quarter, Danaos Corporation delivered earnings of $2.24 per share that surpassed the Zacks Consensus Estimate of $2.10. Moreover, the bottom line improved on a year-over-year basis.

What the Zacks Model Unveils

Our proven Zacks model does not conclusively predict an earnings beat for Danaos Corporation this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Danaos Corporation has an Earnings ESP of 0.00% as the Zacks Consensus Estimate is in line with the Most Accurate Estimate.

Zacks Rank: Danaos Corporation carries a Zacks Rank #3, which increases the predictive power of ESP.

Stocks to Consider

Here are some companies with the right combination of elements to beat on earnings in their upcoming releases.

Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank of 3. The company will report third-quarter 2019 results on Nov 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zillow Group (ZG - Free Report) is a Zacks #3 Ranked company and has an Earnings ESP of +5.09%. The company will announce third-quarter financial results on Nov 7.

Golar LNG (GLNG - Free Report) has an Earnings ESP of +16.52% and is a #3 Ranked stock. The company will announce third-quarter earnings results on Nov 26.

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