DryShips Goes Negative

DryShips (Nasdaq: DRYS  ) reported earnings on May 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), DryShips missed slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
DryShips booked revenue of $247.5 million. The five analysts polled by S&P Capital IQ looked for sales of $251.9 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $207.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.11. The six earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.12 for Q1 compared to $0.07 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.8%, 1,170 basis points worse than the prior-year quarter. Operating margin was 8.6%, 1,860 basis points worse than the prior-year quarter. Net margin was -19.2%, 3,160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $360.1 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $1.30 billion. The average EPS estimate is $0.19.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,957 members out of 3,317 rating the stock outperform, and 360 members rating it underperform. Among 575 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 463 give DryShips a green thumbs-up, and 112 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DryShips is outperform, with an average price target of $3.90.

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