DryShips Earnings: Here’s Why the Stock is Up Now

DryShips, Inc. (NASDAQ:DRYS) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.53%.

DryShips, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.05 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Decreased 0.01% to $336.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DryShips, Inc. reported adjusted EPS loss of $0.05 per share. By that measure, the company beat the mean analyst estimate of $-0.07. It beat the average revenue estimate of $329.57 million.

Quoting Management: George Economou, Chairman and Chief Executive Officer of the Company, commented:
“We continue to be defensive about the short-term prospects of the shipping markets. Asset prices seem to be holding up but we do not expect any positive development in drybulk and tanker charter rates this year. As a result we have focused this year on reducing our breakeven levels. We lowered our newbuilding capital expenditures significantly and are now focusing on other areas.”

Key Stats (on next page)…

Revenue increased 5.13% from $319.71 million in the previous quarter. EPS decreased to $-0.05 in the quarter versus EPS of $-0.10 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.05 to a loss $0.06. For the current year, the average estimate has moved down from a loss of $0.18 to a loss of $0.25 over the last ninety days.

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