) is set to release its second-quarter 2013 results after the
market closes on Aug 8, 2013.
In the last quarter, the company delivered a 0.00% earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
DryShips continues to suffer losses although its top line
improved significantly in the first quarter of 2013. We remain
concerned since management provided a disappointing financial
DryShips declared that it does not foresee any improvement in
the time charter rate for the rest of 2013. This is attributed to
the sluggish growth in China, the world's largest importer of
coal and steel.
Solid performance by the company's majority owned Ocean Rig
deepwater oil drilling unit was more than offset by the tepid
results of its drybulk shipping cargo division and oil tanker
division. In 2013, both the drybulk shipping and the oil tanker
industries are facing severe challenges as the vessel rate
collapsed even below the rate during recession.
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 Expected Surprise
Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this
to happen. Unfortunately, this is not the case here as elaborated
Negative Zacks ESP:
This is because the Most Accurate estimate is a loss 7 cents
while the Zacks Consensus Estimate is a loss of 6 cents. This
leads to an ESP of -16.67% for DryShips.
Zacks Rank #3 (Hold):
DryShips's Zacks Rank #3 decreases the predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of -16.67% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter:
Ocean Rig UDW Inc.
) has Earnings ESP of +100.00% and carries a Zacks Rank #3
BALTIC TRAD LTD (BALT): Free Stock Analysis
COSTAMARE INC (CMRE): Free Stock Analysis
DRYSHIPS INC (DRYS): Free Stock Analysis
OCEAN RIG UDW (ORIG): Free Stock Analysis
To read this article on Zacks.com click here.
) has Earnings ESP of +4.88% and carries a Zacks Rank #3 (Hold).
Baltic Trading Limited
) has Earnings ESP of +18.75% and carries a Zacks Rank #2