DryShips (DRYS) Stock: Headed Up On Earnings

DryShips Inc. DRYS Stock NewsDryShips Inc. (NASDAQ: DRYS) is having a great start to the trading session this morning after the company reported its earnings for the third quarter of 2018. As you could imagine, the report was an overwhelmingly positive one, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:

  • The earnings report;
  • what we’re seeing from DRYS stock as a result; and
  • what we’ll be watching for ahead.

DRYS Reports Q3 Financial Results

As mentioned above, DryShips is headed up early on in the trading session this morning after reporting its financial results for the third quarter. Here’s what we saw from the report:

  • Net Income – In terms of net income, DRYS did incredibly well. In the third quarter, the company reported net income in the amount of $11.6 million. That works out to $0.12 per share in diluted earnings.
  • Important Note – The third quarter results also included gains from the sale of vessels to unaffiliated buyers and vessel impairments that came to a total of $5.1 million. That accounts for approximately $0.05 per share in earnings. Without this, the company’s net income would have come to $6.5 million or $0.07 per share.
  • Adjusted EBITDA – In terms of adjusted EBITDA, DRYS reported $17.2 million for the third quarter.

It’s also worth noting that throughout the quarter, the company expanded its fleet size through the acquisition of new vessels.

What We’re Seeing From The stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of DryShips, the news proved to be incredibly positive. After all, a strong financial report is just what investors want to see during earnings season. So, it comes as no surprie that excited investors are sending the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:07), DRYS is trading at $5.05 per share after a gain of $0.17 per share or 3.48% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on DRYS. In particular, we’re interested in following the story surrounding the company’s continued work to bring growth to their financial reports. We’re also following the delivery of multiple vessels that the company has entered into agreements to buy throughout the third quarter. However, it’s also worth mentioning that through death spiral financing and other moves not in the best interest of shareholders, the company has lost quite a bit of investor faith. So, be careful if you’re going to get involved here. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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