) is set to release its second-quarter 2014 financial numbers after
the closing bell on Aug 5, 2014.
In the last reported quarter, the company delivered a negative
earnings surprise of 300%. Moreover, this global diversified marine
transporter has missed the Zacks Consensus Estimate in all of the
last four quarters, with an average miss of 137.50%. Let's see how
things are shaping up prior to this announcement.
Factors to Consider This Quarter
A major headwind for DryShips is that a significant portion of
its shipping contracts are currently under volatile spot market
rate. Management declared during its first-quarter earnings call
that 36%, 21% and 15% of the company's fleet will be exposed to the
spot market in 2014, 2015 and 2016, respectively. Such a wide
exposure will definitely result in severe top-line fluctuations
Our proven model does not conclusively show that DryShips is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to
happen. Unfortunately, that is not the case here as elaborated
DryShips has a negative Zacks ESP. This is because the Most
Accurate estimate stands at a loss of 8 cents while the Zacks
Consensus Estimate is pegged at a loss of 5 cents. This leads to an
ESP of -60.00% for DryShips.
: DryShips carries a Zacks Rank #3 which when combined with a
-60.00% ESP lowers the possibility of an earnings surprise.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing a negative estimate revision momentum.
Other Stocks to Consider
Here are some companies to consider as our model shows they have
the right combination of elements to post an earnings beat this
Nordic American Tankers Ltd (
) has an earnings ESP of +41.18% and bears a Zacks Rank #3.
KNOT Offshore Partners LP (
) has an earnings ESP of +9.38% and sports a Zacks Rank #1.
GasLog Partners LP (
) has an earnings ESP of +7.14% and carries a Zacks Rank #3.
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DRYSHIPS INC (DRYS): Free Stock Analysis Report
NORDIC AMERICAN (NAT): Free Stock Analysis
GASLOG PARTNERS (GLOP): Free Stock Analysis
KNOT OFFSHOR LP (KNOP): Free Stock Analysis
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