What Does Wall Street See for DryShips' Q2?

DryShips (Nasdaq: DRYS  ) is expected to report Q2 earnings around Aug. 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DryShips' revenue will expand 53.9% and EPS will increase 25.0%.

The average estimate for revenue is $344.8 million. On the bottom line, the average EPS estimate is $0.05.

Revenue details
Last quarter, DryShips booked revenue of $247.5 million. 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
Last quarter, non-GAAP EPS came in at -$0.11. GAAP EPS were -$0.12 for Q1 versus $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.

Recent performance
For the preceding quarter, gross margin was 54.8%, 1,170 basis points worse than the prior-year quarter. Operating margin was 8.6%, 1,810 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
The full year's average estimate for revenue is $1.26 billion. The average EPS estimate is -$0.02.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,949 members out of 3,314 rating the stock outperform, and 365 members rating it underperform. Among 539 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 422 give DryShips a green thumbs-up, and 117 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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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