Danaos Corporation (DAC) 3Q10 Results Fall Slightly Short
In a research report published by Dahlman Rose & Co. this morning the Danaos Corporation's (NYSE: DAC) 3Q10 results are reviewed.
Dahlman Rose & Co. writes, "Danaos reported 3Q10 earnings of $0.05 ex-items, lower than our $0.10 and the Street's $0.09 average estimate. The company continues to enhance its financial position, following its $200MM private placement during the quarter."
Higher operating expenses caused Danaos to miss earnings in 3Q10. This was the result of the "delivery of several newbuildings during the quarter."
Danaos has a Hold rating, which Dahlman Rose & Co. bases on "our view that commitment of cash flow to debt repayment limits potential for dividends. Continued recovery in the container market would likely lead to support for DAC shares, while the company's heavily levered profile leaves it susceptible to loan covenant defaults should vessel values see a decline."
DAC is currently trading at $4.31.
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