Danaos (NYSE:DAC) Issues Earnings Results, Misses Estimates By $0.16 EPS

Key Points

• Danaos reported earnings per share (EPS) of $6.36 for the quarter, which fell short of analysts' expectations of $6.52.
• The company declared a quarterly dividend of $0.85, translating to an annualized yield of 3.7% and a payout ratio of 13.96%.
• Danaos has announced a $100 million share repurchase plan, indicating the board's belief that the stock is undervalued.

Danaos (NYSE:DAC - Get Free Report) issued its quarterly earnings results on Monday. The shipping company reported $6.36 EPS for the quarter, missing analysts' consensus estimates of $6.52 by ($0.16), Zacks reports. Danaos had a net margin of 44.62% and a return on equity of 13.88%. The business had revenue of $262.15 million during the quarter, compared to analysts' expectations of $247.26 million.

Danaos Stock Performance

DAC stock traded up $0.67 during trading on Friday, hitting $94.97. 19,463 shares of the company's stock traded hands, compared to its average volume of 94,468. The company has a quick ratio of 4.18, a current ratio of 5.36 and a debt-to-equity ratio of 0.20. Danaos has a 52 week low of $65.40 and a 52 week high of $96.47. The stock has a fifty day moving average price of $88.63 and a two-hundred day moving average price of $82.95. The stock has a market capitalization of $1.80 billion, a price-to-earnings ratio of 3.92 and a beta of 1.42.

Danaos Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Tuesday, August 19th will be given a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Tuesday, August 19th. Danaos's dividend payout ratio is currently 14.02%.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Danaos stock. Goldman Sachs Group Inc. boosted its holdings in Danaos Corporation (NYSE:DAC - Free Report) by 183.6% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 46,215 shares of the shipping company's stock after acquiring an additional 29,921 shares during the period. Goldman Sachs Group Inc. owned about 0.24% of Danaos worth $3,606,000 at the end of the most recent quarter. Institutional investors and hedge funds own 19.01% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently weighed in on DAC shares. Jefferies Financial Group reissued a "buy" rating and set a $105.00 price target on shares of Danaos in a research report on Tuesday. Wall Street Zen lowered shares of Danaos from a "buy" rating to a "hold" rating in a research note on Wednesday, May 14th.

Danaos declared that its Board of Directors has initiated a stock buyback program on Monday, April 14th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the shipping company to purchase up to 6.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity.