Ultime notizie per Danaos (NYSE:DAC) Azioni

Danaos

Danaos Corp is an international owner of containerships. It provides international seaborne transportation services by operating vessels in the containership sector of the shipping industry. The company's customers include, HMM, MSC, Yang Ming, Hapag Lloyd, ZIM, Maersk, COSCO, OOCL, ONE, PIL, Sealead, Niledutch, Samudera, OSC, and Arkas. Geographically, the company operates in Australia-Asia, Europe, and America, with maximum revenue from the Australia-Asia region. It has two reporting segments Container vessels and Drybulk vessels segment. It generates the majority of its revenue from Container vessels.

Danaos Corp

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Possible labor strikes at U.S. East and Gulf coast ports and Canadian railways may lead to volatility in <a href="https://www.benzinga.com/news/global/24/08/40451543/transatlantic-container-shipping-volumes-rise-as-possible-strike-at-u-s-ports-hovers">container freight rates</a> by causing supply-chain disruptions for the container industry and cargo owners, according to an industry expert.
&#8220;With the looming strikes at Canadian railways and U.S. ports, we may see an immediate uptick in freight rates as market participants brace for significant disruptions,&#8221; said Christian Roeloffs, CEO of German online container marketplace Container xChange.
Read Also: <a href="https://www.benzinga.com/top-stories/24/07/39964809/stock-of-the-day-reversal-for-sfl-corp-why-investors-are-concerned">Stock Of The Day: Reversal For SFL Corp? Why Investors Are Concerned</a>
&#8220;The possibility of simultaneous strikes at U.S. ports and Canadian railways present a perfect storm for North American trade.&#8221;
Canadian&nbsp;National&nbsp;Railway and&nbsp;Canadian&nbsp;Pacific Kansas City plan to lock out thousands of rail workers on Thursday if they cannot reach labor agreements with the Teamsters Canada Rail Conference, Reuters reported.
The Teamsters issued a 72-hour strike notice on Sunday to CPKC ahead of the company's lockout notice.
Meanwhile, the International Longshoreman Association, which represents 45,000 dockworkers at three dozen U.S. ports, plans to go on strike on Oct. 1 if it does not sign a new labor contract with the U.S. Maritime Alliance by that date.
Price Action: Container leasing and container liner stocks saw gains and losses on Wednesday.
<ul>
<li>Triton International Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRTN#NYSE">TRTN</a>) was down 0.53% to close at $26.18</li>
<li>Euroseas Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) declined 4.98% to $45.42.</li>
<li>Global Ship Lease, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) slipped 0.87% to $26.17</li>
<li>Matson, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MATX#NYSE">MATX</a>) picked up 2.09% to $133.73</li>
<li>Danaos Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) declined 0.90% to $82.36</li>
</ul>
Read Now:
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Photo: Shutterstock

Global

Markets

ESEA

MATX

TRTN

Strikes At US Ports, Canada's Railways May Cause Container Freight Rate Volatility

Transatlantic container shipping volumes into the U.S. are <a href="https://www.benzinga.com/news/earnings/24/08/40439449/why-is-israel-based-cargo-shipping-company-zim-integrated-stock-surging-today">making a comeback </a>as U.S. retailers look to replenish inventories ahead of possible strike action at U.S. ports.
&#8220;There is some temptation by customers to bring in goods ahead of the labor contract expiry on Sept. 30,&#8221; Hapag-Lloyd CEO Rolf Habben Jansen said in an online news briefing, Reuters reported.
Hapag-Lloyd is the world&#8217;s fifth-largest container liner.
Freight sector analysts are closely following contract talks between cargo worker unions and port managers in case the September deadline is missed and a strike becomes imminent.
Retailers have also put in their orders sooner as they expect their goods to take longer trips around Africa to avoid Houthi-led attacks in the Red Sea, Hansen said.
Read Also: <a href="https://www.benzinga.com/government/24/03/37969025/baltimore-bridge-ship-collisions-not-uncommon-5-more-u-s-fatal-accidents">Baltimore Bridge: Ship Collisions Not Uncommon — 5 More Fatal Accidents In US</a>
This jump in ordering by U.S. retailers can be good news for several other liner operators that ship goods across the Atlantic basin to the U.S., such as Euroseas Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>), Global Ship Lease Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) and Danaos Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>).
This good news for container shipping comes as ZIM Integrated Shipping Services Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZIM#NYSE">ZIM</a>) posted very strong second-quarter earnings on Monday by capitalizing on transpacific trade into the U.S.
The company&#8217;s average freight rate for a 20-foot container came in at $1,674 for the second quarter, up from $1,193 for the same period last year. ZIM carried 952,000 20-foot containers in the quarter, up from 860,000 such containers a year ago.
ZIM posted earnings per share of $3.08 for the quarter, blowing away analyst EPS consensus of $1.79. Second-quarter revenue totaled $1.933 billion, up from $1.31 billion a year earlier.
Price Actions: Container shipping stocks trended upward on Monday.
<ul>
<li>ZIM jumped 16.74% to close at $22.25</li>
<li>Euroseas gained 6.36% to finish the day at $47.02</li>
<li>Global Ship Lease rose 1.26% to $27.24</li>
<li>Danaos picked up 2% to $84.23</li>
</ul>
Read Now: • <a href="https://www.benzinga.com/markets/equities/24/03/37961583/tesla-gm-ford-supply-chain-concerns-baltimore-port-closure-going-to-have-an-impact">Tesla, GM, Ford Supply Chain Concerns: Baltimore Port Closure &#8216;Going To Have An Impact&#8217;</a>
Photo: Shutterstock

Transatlantic Container Shipping Volumes Rise As Possible Strike At U.S. Ports Hovers

Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) reported quarterly earnings of $6.78 per share which missed the analyst consensus estimate of $7.28 by 6.87 percent. This is a 5.04 percent decrease over earnings of $7.14 per share from the same period last year. The company reported quarterly sales of $246.306 million which beat the analyst consensus estimate of $239.479 million by 2.85 percent. This is a 2.00 percent increase over sales of $241.479 million the same period last year.

Earnings

Earnings Beats

Earnings Misses

News

Danaos Q2 2024 Adj. EPS $6.78 Misses $7.28 Estimate, Sales $246.306M Beat $239.479M Estimate

Costamare (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cmre#NYSE">CMRE</a>) is scheduled to release second-quarter 2024 results on Jul 31, before market open.
The Zacks Consensus Estimate for the to-be-reported quarter&#39;s earnings and revenues is pegged at 72 cents per share and $380.41 million, respectively.
The earnings estimate for the to-be-reported quarter has declined 6.5% over the past 60 days. The bottom-line projection indicates year-over-year growth of 28.6%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 3.5%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/83/72671.jpg?v=212180967" style="border-style:solid; border-width:1px; height:310px; width:600px" />
Image Source: Zacks Investment Research
CMRE has an impressive earnings surprise history, as reflected in the chart below.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/14/72672.jpg?v=323184082" style="border-style:solid; border-width:1px; height:310px; width:600px" />
Image Source: Zacks Investment Research 
Earnings Whispers for Q2
Our proven model does not conclusively predict an earnings beat for Costamare this time around. 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. That&#39;s not the case here.
CMRE has an Earnings ESP of 0.00% and a Zacks Rank #3.
<h3>Factors Likely to Shape CMRE&#39;s Q2 Results</h3>
We expect CMRE&#39;s second-quarter bottom-line performance to have been affected by higher vessel operating expenses, mainly due to the increased average number of vessels in its fleet. High fuel costs are likely to have shot up total expenses.
With the normalization of economic activities, world trade has gathered pace, which is a positive for shipping stocks like Costamare. This is because the shipping industry is responsible for transporting a high proportion of goods involved in world trade.
Bullishness surrounding the containership market is a tailwind for Costamare. A ramp-up of manufacturing activities in Asia aids the containership market besides other factors. Favorable market conditions in the dry bulk sector are also likely to have aided CMRE&#39;s performance in the to-be-reported quarter. Factors like a build-up of iron ore inventories in China have resulted in higher capesize freight rates.
<h3>Price Performance &amp; Valuation</h3>
Costamare, one of the leading owners and providers of containerships and dry bulk vessels for charter across the globe, has gained in excess of 35% on a year-to-date basis, outperforming not only its industry but also other shipping companies like Danaos Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dac#NYSE">DAC</a>) and Frontline plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fro#NYSE">FRO</a>).
<h3>YTD Price Comparison</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/06/72674.jpg?v=1863324505" style="border-style:solid; border-width:1px; height:310px; width:600px" />
Image Source: Zacks Investment Research
From a valuation perspective, Costamare is trading at a discount compared to the industry going by its price/sales ratio. The reading is also below its median over the last five years. The company has a Value Score of A.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/bf/72675.jpg?v=260708522" style="border-style:solid; border-width:1px; height:310px; width:600px" />
Image Source: Zacks Investment Research
<h3>Investor Considerations</h3>
The company&#39;s dry bulk and containership fleets are being aided by the ongoing Red Sea tensions. Reduced container availability due to the Red Sea tensions has resulted in a rise in freight costs. Costamare has been benefiting from the surge in dry bulk rates. Lower capacity is expected to boost earnings. Rates are likely to remain high for quite some time, which should aid Costamare.
CMRE&#39;s focus on fleet modernization and leasing is also impressive. The significant amount of contract coverage generated by CMRE lowers its exposure to shipping market volatility. The fleet renewal strategy improves operational efficiency. Even though CMRE&#39;s future looks bright, one should be mindful of headwinds like high vessel operating costs and fuel expenses apart from the escalated debt load.
<h3>Final Thoughts</h3>
Given the abovementioned headwinds, we believe that investors should refrain from rushing to buy CMRE before Wednesday despite it being attractively valued and having a lot in its favor. Instead, they should monitor the developments pertaining to the stock closely for a more appropriate entry point, as an erroneous and hasty decision could affect portfolio gains. If an investor already holds CMRE stock in his/her portfolio, sit tight, as the upcoming earnings report is likely to confirm the company&#39;s strong performance.
<a href="https://www.zacks.com/stock/news/2311048/should-you-buy-costamare-cmre-stock-ahead-of-q2-earnings?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2311048">To read this article on Zacks.com click here.</a>

Small Cap

Analyst Ratings

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CMRE

Should You Buy Costamare Stock Ahead of Q2 Earnings?

WIIM

CTRM

SBLK

SHIP

STNG

Shares of shipping and tanker stocks are trading lower amid reported hopes of an Israel-Hamas ceasefire, which could ease Red Sea uncertainty and pressure freight rates.

Jefferies analyst Omar Nokta maintains Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) with a Buy and raises the price target from $90 to $105.

Price Target

Jefferies Maintains Buy on Danaos, Raises Price Target to $105

Danaos Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) shares are trading lower after it reported<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b39035638/danaos-corporation-reports-first-quarter-results-for-period-ended-march-31-2024" rel="noreferrer noopener">&nbsp;first-quarter FY24 results</a>.
Operating revenues increased by 4.0% Y/Y to $253.4 million, missing the consensus of $256.0 million.
Vessel operating expenses increased by $2.5 million to $43.1 million in the quarter due to an increase in the average number of vessels in the fleet due to recent dry bulk&nbsp;vessels&nbsp;acquisitions.
Adjusted EBITDA declined to $177.2 million from $179.0 million a year ago. Adjusted EPS of $7.15 missed <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">the consensus of $7.74</a>.
In the quarter, Danaos had an average of 68.0 container vessels and 7.0 Capesize&nbsp;drybulk&nbsp;vessels.&nbsp;
As of March-end, the container&nbsp;vessels&nbsp;utilization stood at 97.3%,&nbsp;higher&nbsp;than 96.8% a year ago quarter, led by decreased days of scheduled dry-docking of the vessels.
In the quarter, the company secured multi-year chartering agreements for all of its 14&nbsp;newbuildings&nbsp;and added around $423 million to its contracted revenue backlog, which currently stands at $2.5 billion with an average charter duration of 2.9 years.
Dividend: Danaos declared a dividend per share of $0.80 for the first quarter of 2024, payable on June 20 to stockholders of record as of June 11.
Buyback: As&nbsp;of the date&nbsp;of this release, Danaos repurchased shares worth $104.4 million under its share repurchase program of up to $200&nbsp;million&nbsp;announced in June 2022, as amended on November 10, 2023.
The&nbsp;company&#8217;s&nbsp;contracted operating&nbsp;days&#8217;&nbsp;charter coverage for the containership fleet is&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">99% for 2024 and 69% for 2025</a>.
As of March-end,&nbsp;Danaos&#8217;s&nbsp;cash and equivalents were $324.3 million.
John Coustas, CEO, said,&nbsp;&#8220;The container market continued to strengthen in the first quarter of 2024, a trend that has continued into the second quarter. Both charter and box rates are gaining momentum, and we have completed all necessary rechartering activity&nbsp;in excess of&nbsp;our internal forecasts.&#8221;
&#8220;The renewed optimism in the market extends to the longer term view of the charterers, who are making charter commitments on newbuilding vessels with deliveries scheduled from 2025 through the end of 2027.&#8221;
Price Action:&nbsp;DAC shares&nbsp;are&nbsp;down 1.93% at $88.84&nbsp;at the last check Tuesday.

Equities

Danaos Navigates Rough Waters: Q1 Earnings Fall Short Despite Revenue Growth And Strategic Expansions

Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) reported quarterly earnings of $7.15 per share which missed the analyst consensus estimate of $7.74 by 7.62 percent. The company reported quarterly sales of $253.449 million which missed the analyst consensus estimate of $256.000 million by 1.00 percent. This is a 4.05 percent increase over sales of $243.574 million the same period last year.

Danaos Q1 2024 Adj EPS $7.15 Misses $7.74 Estimate, Sales $253.449M Miss $256.000M Estimate

As of May 28, 2024, five stocks in the industrials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the <a href="https://www.benzinga.com/topic/rsi">RSI is above 70</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>. 
Here's the latest list of major overbought players in this sector.
<h3 class="wp-block-heading">FREYR Battery, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FREY#NYSE">FREY</a>)</h3>
<ul>
<li>On May 22, FREYR Battery announced that it completed its first production trial of unit cells using the full capabilities of the Casting and Unit Cell Assembly at the Customer Qualification Plant. The company's stock gained around 26% over the past five days and has a <a href="https://www.benzinga.com/quote/FREY">52-week high of $10.10</a>.</li>
<li>RSI Value: 70.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>FREY Price Action: Shares of FREYR Battery rose 17.3% to close at $2.58 on Friday.</li>
<li><a href="https://pro.benzinga.com/dashboard">Benzinga Pro&#8217;s real-time newsfeed</a> alerted to latest FREYR news.</li>
</ul>
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/"><img loading="lazy" decoding="async" width="1024" height="323" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080425/pro2-1024x323.png" alt="" class="wp-image-360732" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080425/pro2-1024x323.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080425/pro2-300x95.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080425/pro2-768x243.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080425/pro2-1536x485.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080425/pro2.png 1555w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">Redwire Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDW#NYSE">RDW</a>)</h3>
<ul>
<li>On May 8, Redwire reported better-than-expected first-quarter sales. &#8220;During the first quarter we executed on our 2024 growth strategy as planned, resulting in both record revenue of $87.8 million and positive Adjusted EBITDA,&#8221; stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. &#8220;We&#8217;ve started the year strong with many large, transformative opportunities in the pipeline.&#8221; The company's stock gained around 32% over the past month and<a href="https://www.benzinga.com/quote/RDW"> has a 52-week </a>high of $5.11.</li>
<li>RSI Value: 70.07</li>
<li>RDW Price Action: Shares of Redwire rose 5.2% to close at $5.03 on Friday.</li>
<li><a href="https://pro.benzinga.com/dashboard">Benzinga Pro&#8217;s charting tool</a> helped identify the trend in Redwire&#8217;s stock.</li>
</ul>
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/"><img loading="lazy" decoding="async" width="1024" height="580" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080441/pro3-1024x580.png" alt="" class="wp-image-360733" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080441/pro3-1024x580.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080441/pro3-300x170.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080441/pro3-768x435.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080441/pro3-1536x870.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080441/pro3.png 1548w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">Bloom Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BE#NYSE">BE</a>)</h3>
<ul>
<li>On May 24, Bloom Energy priced its upsized $350 million 3.00% green convertible senior notes offering due 2029. The company's stock gained around 30% over the past five days and has a <a href="https://www.benzinga.com/quote/BE">52-week high</a> of $18.76.</li>
<li>RSI Value: 71.98</li>
<li>BE Price Action: Shares of Bloom Energy gained 3.6% to close at $16.29 on Friday.</li>
<li><a href="https://pro.benzinga.com/dashboard">Benzinga Pro&#8217;s earnings calendar</a> was used to track Bloom Energy&#8217;s upcoming earnings report</li>
</ul>
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/"><img loading="lazy" decoding="async" width="1024" height="354" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080532/pro4-1024x354.png" alt="" class="wp-image-360738" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080532/pro4-1024x354.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080532/pro4-300x104.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080532/pro4-768x266.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080532/pro4-1536x531.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080532/pro4.png 1547w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">Construction Partners, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROAD#NASDAQ">ROAD</a>)</h3>
<ul>
<li>On May 10, Construction Partners posted a narrower-than-expected quarterly loss. Fred J. (Jule) Smith, III, the Company&#8217;s President and Chief Executive Officer, said, &#8220;We are pleased to report a strong second quarter in the slowest winter quarter of our seasonal business, achieving year-over-year growth in revenue, gross profit and gross profit margin, Adjusted EBITDA and Adjusted EBITDA margin.&#8221; The company's stock jumped around 11% over the past five days and has a 52-week high is $61.45.</li>
<li>RSI Value: 72.14</li>
<li>ROAD Price Action: Shares of Construction Partners rose 5% to close at $61.44 on Friday.</li>
<li><a href="https://pro.benzinga.com/dashboard">Benzinga Pro&#8217;s signals</a> feature notified of a potential breakout in ROAD shares.</li>
</ul>
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/"><img loading="lazy" decoding="async" width="871" height="425" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080545/pro5-1.png" alt="" class="wp-image-360739" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080545/pro5-1.png 871w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080545/pro5-1-300x146.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080545/pro5-1-768x375.png 768w" sizes="(max-width: 871px) 100vw, 871px" /></a></figure>
<h3 class="wp-block-heading">Danaos Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>)</h3>
<ul>
<li>Danaos is expected to release its results for the first quarter ended March 31, 2024, before the opening bell on Tuesday, May 28. The company's stock jumped around 18% over the past month and <a href="https://www.benzinga.com/quote/DAC">has a 52-week high</a> of $90.95.</li>
<li>RSI Value: 91.13</li>
<li>DAC Price Action: Shares of Danaos rose 2.7% to close at $90.59 on Friday.</li>
<li>Insider trades for Danaos were monitored <a href="https://pro.benzinga.com/dashboard">using Benzinga Pro.</a></li>
</ul>
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/"><img loading="lazy" decoding="async" width="1024" height="447" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080558/pro6-1024x447.png" alt="" class="wp-image-360740" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080558/pro6-1024x447.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080558/pro6-300x131.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080558/pro6-768x335.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/29080558/pro6.png 1223w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
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Short Ideas

Pre-Market Outlook

FREY

ROAD

Top 5 Industrials Stocks That Could Sink Your Portfolio In Q2

As of April 29, 2024, four stocks in the industrials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the <a href="https://www.benzinga.com/topic/rsi">RSI is above 70</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.  
Here's the latest list of major overbought players in this sector.
<h3 class="wp-block-heading">Danaos Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>)</h3>
<ul>
<li>On Feb. 13, Danaos posted downbeat quarterly results. The company's stock gained around 3% over the past five days and has a <a href="https://www.benzinga.com/quote/DAC">52-week high of $80.39</a>.</li>
<li>RSI Value: 70.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>DAC Price Action: Shares of Danaos gained 1.7% to close at $75.21 on Friday.</li>
</ul>
<h3 class="wp-block-heading">Westinghouse Air Brake Technologies Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAB#NYSE">WAB</a>)</h3>
<ul>
<li>On April 24, Wabtec reported better-than-expected first-quarter financial results and raised its 2024 guidance. "Looking ahead, we continue to see underlying customer demand for our products and solutions. Our orders pipeline and 12-month backlog continue to be strong, which provides visibility for profitable growth ahead. Our team is focused on product innovation, disciplined cost management, and relentless execution for our customers. These factors, coupled with our strong Q1 results, give us confidence to raise our full-year 2024 guidance," commented Rafael Santana, Wabtec's President and CEO. The company's stock gained around 14% over the past five days and <a href="https://www.benzinga.com/quote/WAB">has a 52-week high</a> of $167.49.</li>
<li>RSI Value: 82.14</li>
<li>WAB Price Action: Shares of Westinghouse Air Brake Technologies gained 0.7% to close at $164.36 on Friday.</li>
</ul>
<h3 class="wp-block-heading">JanOne Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JAN#NASDAQ">JAN</a>)</h3>
<ul>
<li>On March 15, JanOne regained compliance with Nasdaq&#8217;s listing requirements. The company's stock gained around 98% over the past month and has a <a href="https://www.benzinga.com/quote/JAN">52-week high </a> of $5.11.</li>
<li>RSI Value: 77.93</li>
<li>JAN Price Action: Shares of JanOne gained 8.3% to close at $5.10 on Friday.</li>
</ul>
<h3 class="wp-block-heading">Tutor Perini Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPC#NYSE">TPC</a>)</h3>
<ul>
<li>On April 25, Tutor Perini reported better-than-expected first-quarter financial results and issued FY24 EPS guidance. The company's stock jumped around 34% over the past five days and has a 52-week high is $17.95.</li>
<li>RSI Value: 78.91</li>
<li>TPC Price Action: Shares of Tutor Perini gained 28% to close at $17.78 on Friday.</li>
</ul>
Check This Out: <a href="https://www.benzinga.com/news/earnings/24/04/38482020/investor-optimism-improves-following-earnings-reports-us-stocks-notch-weekly-gains">Investor Optimism Improves Following Earnings Reports; US Stocks Notch Weekly Gains</a>

Top 4 Industrials Stocks That May Collapse This Quarter

Monday marks the last chance for investors to receive the next dividend payout from Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>). 
<h3>What's Happening</h3>
The company announced on Tuesday that it would pay shareholders a quarterly dividend of 80 cents per share. On Tuesday, Danaos will go ex-dividend, meaning the stock will trade lower to reflect that payout. In other words, the stock will likely open 80 cents lower than it would have opened on any other day.
In order to be eligible to receive a company's dividend, shareholders must own the stock prior to the ex-dividend date—in this case, Tuesday. Shareholders who own DAC as of the end of Monday's session are eligible to receive the 80 cents dividend payout for every share that they own. 
According to the company, this dividend will be paid out to shareholders on March 14, 2024. Investors will then be able to either reinvest those dividends back into the stock or use the payment in some other way. 
<a href="https://www.benzinga.com/quote/DAC">See current stock movements Danaos on Benzinga.</a>

Dividends

Monday Is Your Last Chance To Buy Danaos Before The Dividend Payout

Jefferies analyst Omar Nokta reiterates Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) with a Buy and maintains $90 price target.

Reiteration

Jefferies Reiterates Buy on Danaos, Maintains $90 Price Target

Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) reported its Q4 earnings results on Tuesday, February 13, 2024 at 04:30 PM.
Here's what investors need to know about the announcement.
<h3>Earnings</h3>
Danaos missed estimated earnings by 10.15%, reporting an EPS of $6.99 versus an estimate of $7.78.
Revenue was down $3.17 million from the same period last year.
<h3>Past Earnings Performance</h3>
Last quarter the company missed on EPS by $0.1 which was followed by a 6.47% increase in the share price the next day.
Here's a look at Danaos's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>7.36</td>
<td>6.67</td>
<td>5.89</td>
<td>7.24</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>7.26</td>
<td>7.14</td>
<td>7.14</td>
<td>6.99</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>234.25M</td>
<td>225.75M</td>
<td>209.71M</td>
<td>242.64M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>239.22M</td>
<td>241.48M</td>
<td>243.57M</td>
<td>252.48M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Danaos <a href="https://www.benzinga.com/quote/DAC/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Danaos: Q4 Earnings Insights

Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) reported quarterly earnings of $7.70 per share which missed the analyst consensus estimate of $7.79 by 1.16 percent. The company reported quarterly sales of $249.31 million which missed the analyst consensus estimate of $250.19 million by 0.35 percent. This is a 1.25 percent decrease over sales of $252.48 million the same period last year.

Danaos Q4 2023 GAAP EPS $7.70 Misses $7.79 Estimate, Sales $249.31M Miss $250.19M Estimate

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Earnings Scheduled For February 13, 2024

Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) is set to give its latest quarterly earnings report on Tuesday, 2024-02-13. Here's what investors need to know before the announcement.
Analysts estimate that Danaos will report an earnings per share (EPS) of $7.78. 
Danaos bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Past Earnings Performance</h3>
Last quarter the company missed EPS by $0.10, which was followed by a 6.47% increase in the share price the next day.
Here's a look at Danaos's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>7.36</td>
<td>6.67</td>
<td>5.89</td>
<td>7.24</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>7.26</td>
<td>7.14</td>
<td>7.14</td>
<td>6.99</td>
</tr>
<tr>
<td>Price Change %</td>
<td>6.47%</td>
<td>2.57%</td>
<td>4.58%</td>
<td>-3.17%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1707764516_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Danaos were trading at $74.34 as of February 09. Over the last 52-week period, shares are up 28.87%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/DAC/earnings">To track all earnings releases for Danaos visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Danaos's Earnings: A Preview

<h3>What are Value Stocks?</h3>
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued. 
<h2>Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:</h2>
<ol>
<li>Intuitive Machines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>) - P/E: 0.82</li>
<li>Harte-Hanks (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HHS#NASDAQ">HHS</a>) - P/E: 2.35</li>
<li>Navios Maritime Partners (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NMM#NYSE">NMM</a>) - P/E: 2.12</li>
<li>Greenpro Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRNQ#NASDAQ">GRNQ</a>) - P/E: 3.53</li>
<li>Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) - P/E: 2.66</li>
</ol>
This quarter, Intuitive Machines experienced a decrease in earnings per share, which was $1.52 in Q2 and is now $1.29. Harte-Hanks saw a decrease in earnings per share from 0.16 in Q2 to $0.08 now. Its most recent dividend yield is at 10.59%, which has increased by 0.76% from 9.83% in the previous quarter.
Most recently, Navios Maritime Partners reported earnings per share at $2.68, whereas in Q2 earnings per share sat at $3.32. Most recently, the company reported a dividend yield of 0.88%, which has increased by 0.01% from last quarter's yield of 0.87%.
This quarter, Greenpro Capital experienced a decrease in earnings per share, which was $0.86 in Q2 and is now $-0.02. Danaos has reported Q3 earnings per share at $7.26, which has increased by 1.68% compared to Q2, which was 7.14. The company's most recent dividend yield sits at 5.05%, which has increased by 0.65% from 4.4% last quarter. 
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.

GRNQ

LUNR

5 Value Stocks To Watch In The Industrials Sector

Investors with a lot of money to spend have taken a bullish stance on Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with DAC, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 8 uncommon options trades for Danaos.
This isn't normal.
The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $62,655, and 6 are calls, for a total amount of $363,690.
<h3>Projected Price Targets</h3>
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $55.0 to $80.0 for Danaos over the last 3 months. 
<h3>Insights into Volume &amp; Open Interest</h3>
In terms of liquidity and interest, the mean open interest for Danaos options trades today is 1520.0 with a total volume of 2,072.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Danaos's big money trades within a strike price range of $55.0 to $80.0 over the last 30 days.
<h3>Danaos Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1704481250_0.png" alt="Options Call Chart" />
<h3>Noteworthy Options Activity:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>DAC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/16/24</td>
<td>$75.00</td>
<td>$138.3K</td>
<td>222</td>
<td style="text-align: right;">402</td>
</tr>
<tr>
<td>DAC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/16/24</td>
<td>$75.00</td>
<td>$89.0K</td>
<td>222</td>
<td style="text-align: right;">184</td>
</tr>
<tr>
<td>DAC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$60.00</td>
<td>$41.2K</td>
<td>973</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>DAC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/19/24</td>
<td>$80.00</td>
<td>$36.2K</td>
<td>1.1K</td>
<td style="text-align: right;">465</td>
</tr>
<tr>
<td>DAC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>04/19/24</td>
<td>$70.00</td>
<td>$32.7K</td>
<td>1.3K</td>
<td style="text-align: right;">283</td>
</tr>
</tbody>
</table>

<h3>About Danaos</h3>
Danaos Corp is an international owner of containerships. It provides international seaborne transportation services by operating vessels in the containership sector of the shipping industry. The company's customer includes CMA-CGM, Hyundai Merchant Marine, MSC, Yang Ming, Hapag Lloyd, ZIM, Maersk, COSCO, OOCL, Evergreen, KMTC, SITC, Niledutch, Samudera and ONE; and for Gemini, MSC, CMA-CGM, Hapag Lloyd and TS Lines. Geographically, the company operates in Australia-Asia, Europe, and America, with maximum revenue from the Australia-Asia region.
Having examined the options trading patterns of Danaos, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
<h3>Where Is Danaos Standing Right Now?</h3>
<ul>
<li>Trading volume stands at 152,884, with DAC's price down by -0.61%, positioned at $77.14.</li>
<li>RSI indicators show the stock to be may be overbought.</li>
<li>Earnings announcement expected in 39 days.</li>
</ul>
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Danaos, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Options

Market Whales and Their Recent Bets on DAC Options

<h3>What Defines a Value Stock?</h3>
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued. 
<h2>Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:</h2>
<ol>
<li>AGCO (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGCO#NYSE">AGCO</a>) - P/E: 7.87</li>
<li>Danaos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) - P/E: 2.49</li>
<li>Bridger Aerospace Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAER#NASDAQ">BAER</a>) - P/E: 0.89</li>
<li>Navios Maritime Partners (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NMM#NYSE">NMM</a>) - P/E: 2.02</li>
<li>Hyster-Yale Materials (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HY#NYSE">HY</a>) - P/E: 9.5</li>
</ol>
AGCO has reported Q3 earnings per share at $3.97, which has decreased by 7.46% compared to Q2, which was 4.29. Most recently, the company reported a dividend yield of 1.03%, which has increased by 0.17% from last quarter's yield of 0.86%.
Most recently, Danaos reported earnings per share at $7.26, whereas in Q2 earnings per share sat at $7.14. Its most recent dividend yield is at 5.05%, which has increased by 0.65% from 4.4% in the previous quarter.
Bridger Aerospace Gr's earnings per share for Q3 sits at $0.15, whereas in Q2, they were at -0.55. Navios Maritime Partners's earnings per share for Q3 sits at $2.68, whereas in Q2, they were at 3.32. Its most recent dividend yield is at 0.88%, which has increased by 0.01% from 0.87% in the previous quarter.
Most recently, Hyster-Yale Materials reported earnings per share at $2.06, whereas in Q2 earnings per share sat at $2.21. The company's most recent dividend yield sits at 2.9%, which has increased by 0.07% from 2.83% last quarter. 
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.

AGCO

BAER

A Look Into Industrials Sector Value Stocks

On December 7, 2023, prominent figures in the container shipping industry delved into the intricacies of the market&rsquo;s supply and demand fundamentals, their own company&rsquo;s strategies, and their outlook on the segment&rsquo;s outlook during Capital Link&rsquo;s recent webinar focused on container shipping.
Highlights:
<ul>
<li>Container shipping remains a critical element of global trade, facilitating the transportation of approximately 80% of the world&#39;s manufactured goods.</li>
<li>Container market shifts after a two-year rate boom, yet rates remain above pre-pandemic levels.</li>
<li>Despite economic challenges, signs indicate strength in the container segment, especially for mid-sized and small vessels, driven by factors like a smaller order book, increased scrapping, and environmental regulations.</li>
<li>Large vs. mid-sized/small container vessels face different realities.</li>
<li>Companies in the mid-sized and small segment invest in new buildings for fleet renewal, focusing on modern vessels with advanced technology to enhance efficiency and reduce environmental impact.</li>
<li>The industry&#39;s commitment to sustainability is highlighted, with a shift towards investing in technology, innovation, and green fuels, aligning with regulatory changes and meeting evolving customer needs.</li>
<li>Container shipping companies balance shareholder rewards and fleet investment</li>
</ul>
Webinar Participants: 
Mr. Chris Robertson, Vice President of Deutsche Bank, served as the webinar&rsquo;s moderator. He was joined by:
<ul>
<li>Mr. Evangelos Chatzis, CFO of Danaos Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dac#NYSE">DAC</a>)</li>
<li>Dr. Anastasios Aslidis, CFO of Euroseas Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/esea#NASDAQ">ESEA</a>)</li>
<li>Mr. Thomas Lister, CCO &amp; Head of ESG of Global Ship Lease (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>) (The day after the webinar, it was announced that Mr. Lister will become CEO as of March 31, 2024)</li>
<li>Mr. Constantin Baack, CEO of MPC Container Ships (OSLO: MPCC)</li>
</ul>
The full webinar can be accessed <a href="https://youtu.be/2o3-kHd4GLM?si=wx87W1HEuzmVKQwx">here</a>. 
<h3>Sustained Strength In Global Container Trade </h3>
Coming down from the boom in rates in the last two years, the container market has experienced a softening, although current rates are still higher than pre-pandemic levels. Container shipping makes up a critical element of global trade. As Global Ship Lease&rsquo;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>) Chief Commercial Officer, Mr. Thomas Lister noted, around 80% of the world&rsquo;s manufactured goods are transported by containers. These goods total about 200 million TEUs, which are carried by nearly 6,000 container ships each year. Despite the weakened economy and what seems to be a large orderbook, there are signs that the container segment will remain strong, particularly for mid-sized and small vessels, where a smaller orderbook, increased scrapping, and environmental regulations will make supply and demand fundamentals more dynamic.
This incredibly complex segment is made up of liners, who connect producers of goods with consumers by arranging the transportation of goods, as Mr. Evangelos Chatzis, CFO of Danaos Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dac#NYSE">DAC</a>), noted, and owners, who provide the vessels for transportation.
Typically, liners own about 50% of the vessels they employ, and charter in the rest. Usually, they prefer to own the large vessels measuring over 15,000 TEU, while opting to charter the smaller tonnage. However, this varies from company to company, as some liners own all their tonnage, while others charter all of it from owners. Owners and liners tend to have a symbiotic relationship &ndash; as, although owners provide the vessels, liners cover fuel costs, Mr. Lister noted, and around half of the global fleet is owned by liner companies.
Liners tend to prefer owning larger vessels, which make up 45% of the global fleet, as these strategic assets operate on the major global East-West trade routes like Asia to Europe, trans-Pacific, and transatlantic trips, Mr. Lister stressed.
<h3>Midsized And Smaller Container Vessels Subject To Different Market Dynamics Than Larger Ships</h3>
Mid-sized and smaller ships, which are up to 10,000 TEUs, service intermediary trade routes, such as North-South trips. Smaller ships such as those operated by MPC Container Ships (OSLO: MPCC), which range from 1,000 - 6,000 TEU, are used for intra-regional trade routes, including intra-Asian, intra-European, and intra-South American journeys, the company&rsquo;s CEO, Mr. Constantin Baack, stated. Around 98% of the ships used in these smaller trade routes are below 5,000 TEU, he continued. These mid-sized and smaller vessels, all under 10,000 TEU, are a fundamental part of global trade, as they account for around 70% of global containerized trade volumes, GSL&rsquo;s CCO Mr. Lister noted.
All of the companies participating in the webinar are focused on mainly smaller and midsized vessels. Euroseas (Nasdaq: <a class="ticker" href="https://www.benzinga.com/stock/esea#Nasdaq">ESEA</a>) is centered on vessels ranging from 1,500 to 6,500 TEU, GSL&rsquo;s fleet ranges from 2,000 TEU to 11,000 TEU, DAC is focused on ships from 2,200 TEU up to 13,000 TEU, and MPC owns those measuring 1,000 to 6,000 TEU.
Although large, midsized, and small vessels are all operating in the container shipping industry, they experience significantly different market dynamics. While the orderbook for larger vessels is incredibly high due to the massive profits liner companies experienced during the pandemic, there are far fewer new builds on the order book in the mid-sized and smaller container shipping space.
Spurred on by significant cashflows during the pandemic, liner companies invested in new, larger vessels in order to maintain competitiveness on mainline trades, Mr. Baack stated. However, while many companies did opt to purchase new builds for the smaller ships, the orderbook is not nearly as high as it is for the larger vessels. Additionally, a number of factors such as global fleet age and environmental regulations will impact the smaller container vessels heavily. The global fleet on the water has an average of 15 to 16 years, compared to the average economic lifespan of a ship, which is around 25 years. These factors will likely prompt more recycling, taking a portion of the global fleet off the water, MPCC&rsquo;s CEO stated.&nbsp;
Mr. Lister from GSL delved into the specifics of the orderbook, noting that the order book to fleet ratio is 29%, and is weighed heavily toward very large ships. For sub-10,000 TEU ships, however, the ratio is 14%, and deliveries extend until 2027. GSL&rsquo;s CCO emphasized that there has been chronic underinvestment in mid and smaller-sized container vessels, a major cause of the aging fleet. So, although there are a number of new builds on the books for smaller vessels, net growth is minimal compared to the aging fleet for this segment.
<h3>Demand And Charter Rates</h3>
In general, economic growth drives demand in the container shipping sector. Historically, GDP growth served as a metric for container demand. Currently, the ratio of demand growth per GDP growth measures at around 0.8 to 1.2, MPCC&rsquo;s CEO stated. Currently, as the world economy stagnates, demand is low, yet rates remain higher than they were before the pandemic.
As container demand is propelled by economic growth, and the world economy is subject to volatility, the security and up-front cash flow that longer-term charters provide is quite attractive to container companies. This is compared to shorter-term spot rates, which offer the potential of incredibly high rates when the market is high but do not provide the security of long-term, predictable profit.
Although owners of smaller-sized ships usually opt for shorter-term charters, ESEA capitalized on a number of competitive opportunities during the pandemic and secured longer-term charters, Dr. Anastasios Aslidis, CFO of Euroseas Ltd. said. The company has secured significant charter coverage for 2024, with almost 70% of the new buildings covered at rates near $30,000 a day. Additionally, the company has a charter cover of 25% for 2025. For GSL, which prioritizes the forward cash flow visibility that longer-term charters provide, 80% of 2024 is covered. The company has contracted revenues of $1.8 billion with an average remaining charter term of 2.1 years. Mr. Chatzis of DAC noted that the company has a substantial contract backlog of $2.5 billion, translating to approximately $1.9 billion of EBITDA, with an average charter duration of three years. Currently, the company is 90% covered for 2024 and 60% covered for 2025, highlighting DAC&rsquo;s commitment to securing charters for medium to long durations. Opting for shorter-term charters ranging from three to twelve months, MPCC aims for a staggered charter book, avoiding having all ships open simultaneously. MPCC has fixed 67% of its operating day for 2024.
As the market is currently soft, and many tonnage providers secured high rates from liner companies when the market was booming, there has been some concern that these contracts will be renegotiated. However, Mr. Chatzis of DAC dismissed the notion, stating that in his over two decades in the industry, there has never been a contract renegotiation without exception. He clarifies that liners, despite facing challenges, are companies with real assets and business infrastructure, servicing the global logistical chain. The contractual commitments are not easily altered simply due to market fluctuations.
<h3>Investing In Fleet Renewal And Newbuilds</h3>
While companies strive to maintain competitive supply and demand dynamics, they also aim to maintain a competitive and relatively young fleet. Therefore, a number of companies in the small and midsized segment have invested in new buildings. ESEA&rsquo;s CFO noted that the company has ordered nine ships over the past few years, with two already delivered and seven more to come. The new additions to the fleet are modern vessels with advanced technology, burning 35% to 40% less fuel per day compared to similar-sized ships, Dr. Aslidis noted.&nbsp;
DAC has also invested in new vessels. The company has 10 ships on order, all ranging from 6,000 to 8,000 TEU. These new vessels are designed to be methanol-ready, equipped with scrubbers, and incorporate the latest emission-reducing technologies.
Mr. Chatzis, DAC&rsquo;s CFO, stressed the importance of fleet modernization and staying competitive through innovation and renewal. He said that, in order to meet the evolving needs of its customers, DAC believes in investing in the latest technology and aligning with developments and regulatory changes in the industry.
Although faced with an aging fleet, owners may be hesitant to invest in new buildings due to the lack of certainty surrounding green fuels and environmental technology, weighing out the benefits of these pricey investments with the risk that they may not prove advantageous.&nbsp;
GSL&rsquo;s CCO expressed caution and a preference for an &quot;active wait-and-see approach.&quot; He pointed out the challenges of choosing the right fuel among the many options like methanol, ammonia, and nuclear. Rather than purchasing new ships, Global Ship Lease focuses on retrofitting existing ships to enhance efficiency, collaborating with charterers on operational improvements in order to optimize ship performance and reduce emissions.
<h3>Capital Allocation &ndash; Shareholder Rewards Or Fleet Renewal?</h3>
After container shipping companies welcomed increased profitability during the pandemic, they were faced with the option of offering larger rewards to shareholders or investing in renewing their fleets.
Dr. Aslidis of ESEA stressed the importance of returning value to shareholders and highlighted the company&rsquo;s two-pronged approach to returning value to its shareholders. First, the company initiated a dividend payment of $0.50 per quarter, totaling $2 per year. This dividend distribution has been in place for nearly two years, and the company aims to sustain it for the foreseeable future. Secondly, ESEA has implemented a share repurchase program, aiming to maximize repurchases within the allowed liquidity constraints. This is all while ESEA seeks to balance its cost allocation, enabling it to fund its new building program, cultivate an environmentally friendly fleet, offer shareholder rewards, and maintain liquidity so that it may jump on any advantageous opportunities that may arise now that the market is weaker.&nbsp;
Similarly, Mr. Baack of MPCC stated that the company places a strong emphasis on returning capital to investors through dividends and noted that MPCC has paid out over $730 million in dividends in less than 24 months. MPCC&rsquo;s policy is to pay out 75% of its adjusted net profits as a quarterly dividend. The company is able to offer dividends while remaining well-positioned for investment opportunities due to its low leverage &ndash; it has a net debt of around $1 million per vessel. The company has also renewed its fleet, with a substantial portion of its fleet being either newly built or quite young. MPCC&rsquo;s CEO expressed his belief that cautiously adopting new technology allows the company to remain a strong partner for charterers. Generally, MPCC has invested in new technology where the locked-in EBITDA is higher than the construction Capex, providing limited risk to the company.
For DAC, paying dividends has been a high priority, Mr. Chatzis stated. The company has increased its dividend steadily over the past few years, reaching $3.2 per share, offering a yield of approximately 4.5% to 5%. The company&rsquo;s intention is to sustain a fixed dividend that is not tied to income or cash flow percentages, ensuring investors view it as a reliable component of their returns. Apart from the dividend, DAC&rsquo;s CFO noted that, as he believes the company is undervalued, DAC has begun a share buyback program to reward shareholders. So far, the company has completed a $100 million buyback and has authorized an additional $100 million program.&nbsp;
In terms of fleet renewal, DAC considers it a priority, not only for replacing aging vessels but also for enhancing the environmental performance of its fleet, which has an average age of 14 years. To this end, DAC has placed orders for methanol-ready ships, enabling the option of retrofitting for methanol use without committing the capital upfront.
Mr. Lister of Global Ship Lease highlighted the company&#39;s considered approach to capital allocation, taking risks, opportunities, and relative risk-adjusted returns into account. The company has designed its dividend of $1.50 per share, approximately 8% at the current stock price, to be sustainable throughout market cycles. GSL has also implemented a share buyback program, which started in the third quarter of 2021 and has continued quarterly.&nbsp;
Despite its recent softening from the pandemic-induced boom, the container sector remains a vital component of global trade. The market dynamics vary significantly between larger and mid-sized to small vessels, with the latter showing potential for growth amid environmental regulations and a smaller order book.
This content is for informational purposes only and is not intended to be investing advice.
This article is from an external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

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