DryShips Inc. (NASDAQ:DRYS) shares up on Imprial Capital coverage
DryShips Inc. (NASDAQ:DRYS), a shipping services company engaged in transportation of drybulk cargoes and crude oil globally through sea routes, saw its shares go up, after Imperial Capital initiated coverage on DRYS stocks with an “outperform” rating. They also have a $2.75 price target on DryShips Inc.’s stock. Imperial Capital’s price target would indicate a potential 34.15% upside from the company’s current price.
For the second quarter ended June 30, 2013, the company reported a net loss of $18.2 million and $0.05 basic and diluted loss per share. However, the loss was not that bad, when compared with analysts expected. The loss was $0.02 better than what analysts had estimated. DryShips Inc. announced revenue of $336.10 million for the quarter, compared to the estimate of $329.57 million.
For the drybulk carrier segment, the company’s net voyage revenues were $42.4 million for the second quarter, as compared to $58.6 million for same period a year ago. Net voyage revenues for the tanker segment were $9.1 million versus $8.5 million y-o-y. In addition, Revenues from drilling contracts, part of the offshore drilling segment, decreased by $3.7 million to $259.8 million from $263.5 million last year.
Separately, Zacks analysts reaffirmed a “neutral” rating on shares of DryShips. They now have a $2.00 price target on the stock.
In total, five research analysts have issued a “hold” rating on the company’s stock and three have assigned a “buy” rating. Currently, the consensus rating on DryShips Inc.’s stock is “Hold” and an average target price is $2.20.
DryShips operates through its majority-owned subsidiary, Ocean Rig UDW Inc. This year in July, Ocean Rig announced an out of court settlement with Cairn Energy, where it received $5.00 compensation, against an outstanding receivable of $11.0 million. As a result, Ocean Rig wrote off $6.0 million.