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Danaos to Report Q3 Earnings: What's in the Offing for the Stock?

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Danaos Corporation (DAC - Free Report) is scheduled to release third-quarter 2024 results on Nov. 12 before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Danaos has a discouraging earnings surprise history, having missed the Zacks Consensus Estimate in each of the trailing four quarters. The average miss is 6.3%.

The Zacks Consensus Estimate for DAC’s soon-to-be-reported quarter’s earnings has been revised downward by 3.4% in the past 60 days to $6.86 per share.

We expect Danaos' performance in the to-be-reported quarter to be affected by continued market disruptions driven by challenges in the Red Sea and the Ukraine war. Higher charter rates are expected to have boosted the top line. The Zacks Consensus Estimate for revenues is pegged at $251.16 million, which indicates growth of 5% from the year-ago levels.

We expect Danaos’ third-quarter bottom-line performance to have been hurt by higher vessel operating expenses due to the increase in the average number of vessels in its fleet and an uptick in the average daily operating cost for vessels.

However, increased fleet utilization is expected to have contributed to the company’s prospects in the to-be-reported quarter.

What Our Model Says About DAC

Our proven model does not conclusively predict an earnings beat for Danaos this time. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

DAC has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Highlights of DAC’s Q2 Results

Danaos came out with quarterly earnings of $6.78 per share, missing the Zacks Consensus Estimate of $7.04 per share. This compares to earnings of $7.14 per share a year ago. These figures are adjusted for non-recurring items.

Revenues of $246.3 million beat the Zacks Consensus Estimate by 3.1%. This compares to the year-ago revenues of $241.48 million.

Q3 Performances of Other Transportation Companies

Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.

Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This included the $380 million impact of the outage caused by CrowdStrike (CRWD).

Norfolk Southern Corporation’s (NSC - Free Report) third-quarter 2024 earnings (excluding $1.6 from non-recurring items) of $3.25 per share beat the Zacks Consensus Estimate of $3.10 and increased 22.6% year over year due to lower costs.

Railway operating revenues were $3.05 billion in the quarter under review, lagging the Zacks Consensus Estimate of $3.09 billion. However, the top line increased 2.7% year over year, with the Merchandise and Intermodal segments registering an improvement in revenues.

J.B. Hunt Transport Services’ (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.

Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The operating income for the September quarter decreased 7% year over year to $224.1 million.

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