DryShips Earnings: Here’s Why Investors are Selling Shares Now
DryShips, Inc. (NASDAQ:DRYS) had a loss and met 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 down 6.22%.
DryShips, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.1 in the quarter versus EPS of $-0.08 in the year-earlier quarter.
Revenue: Rose 29.17% to $319.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: DryShips, Inc. reported adjusted EPS loss of $0.1 per share. By that measure, the company missed the mean analyst estimate of $-0.1. It beat the average revenue estimate of $309.2 million.
Quoting Management: George Economou, Chairman and Chief Executive Officer of the Company, commented:
“During the first quarter of 2013, we entered into agreements to sell four of our bulk carriers under construction in China. We did not have any bank financing in place for these vessels. Under the terms of the sale agreements, we will make payments of only $29 million, effectively eliminating $149 million in capital expenditures. We have now reduced our newbuilding program to six bulk carriers, two of which are scheduled for delivery in 2013, for which we have time charters and bank financing in place, and four of which are scheduled for delivery in 2014, for which we are considering our options.”
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