Seaspan Earnings: Here’s Why Investors are Not Happy Now

Seaspan Corp. (NYSE:SSW) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.39%.

Seaspan Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 48.57% to $0.18 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 0.88% to $167.79 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Seaspan Corp. reported adjusted EPS income of $0.18 per share. By that measure, the company missed the mean analyst estimate of $0.24. It beat the average revenue estimate of $166.93 million.

Quoting Management: Gerry Wang, Chief Executive Officer, Co-Chairman, and Co-Founder of Seaspan, commented, “During the first half of 2013, we generated strong and stable results and once again increased our common share dividend.”
Mr. Wang continued, “Seaspan continues to capitalize on attractive growth opportunities. We are pleased to have commenced the third quarter by signing a major newbuilding contract and are in the process of finalizing long-term time charter agreements for these vessels. Seaspan’s strong balance sheet combined with its technical and operational expertise in large modern containerships position the Company to continue to execute its growth strategy and provide charterers with their desired vessels.”Second Quarter Developments

Key Stats (on next page)…

Revenue increased 1.74% from $164.92 million in the previous quarter. EPS decreased 14.29% from $0.21 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.23 to a profit $0.25. For the current year, the average estimate has moved down from a profit of $0.98 to a profit of $0.94 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)