DryShips (Nasdaq: DRYS) is expected to report Q3 earnings around Nov. 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's revenues will expand 5.7% and EPS will shrink to a loss.

The average estimate for revenue is $336.3 million. On the bottom line, the average EPS estimate is -$0.01.

Revenue details
Last quarter, DryShips booked revenue of $336.1 million. GAAP reported sales were 50% higher than the prior-year quarter's $224.0 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 -$0.03. GAAP EPS were -$0.05 for Q2 against -$0.33 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 48.6%, 1,100 basis points worse than the prior-year quarter. Operating margin was 13.8%, 460 basis points worse than the prior-year quarter. Net margin was -5.4%, 4,550 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.21 billion. The average EPS estimate is -$0.17.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,930 members out of 3,295 rating the stock outperform, and 365 members rating it underperform. Among 545 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 432 give DryShips a green thumbs-up, and 113 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DryShips is hold, with an average price target of $3.93.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.