DryShips Beats Up on Analysts Yet Again

Just the facts, Fool.

DryShips (Nasdaq: DRYS) reported earnings on May 22. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP loss per share shrank. GAAP loss per share grew.

Gross margins dropped, operating margins increased, net margins dropped.

Revenue details
DryShips recorded revenue of $319.7 million. The four analysts polled by S&P Capital IQ predicted revenue of $315.3 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $247.5 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 -$0.10. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.10 per share. Non-GAAP EPS were -$0.10 for Q1 against -$0.11 per share for the prior-year quarter. GAAP EPS were -$0.30 for Q1 against -$0.12 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 46.7%, 810 basis points worse than the prior-year quarter. Operating margin was 9.5%, 90 basis points better than the prior-year quarter. Net margin was -36.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $336.9 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $1.42 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 2,878 members out of 3,237 rating the stock outperform, and 359 members rating it underperform. Among 489 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 397 give DryShips a green thumbs-up, and 92 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 $2.32.

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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 position in any of the stocks mentioned. 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.