Drys Earnings - Dryships Earnings analysis 8/22/08

Dryships ( DRYS ) reported earnings 8/21/08 for the 2nd quarter ( Q2 ). This morning, August 22nd, 2008, Drys is headed lower in pre market trading.

Earnings Results for Dryships ( DRYS ):

-- The Company reported Net Income of $299.8 million or $7.10 per fully diluted share for the second quarter of 2008. Included in the second quarter results is a capital gain on the sale of three vessels of $135.8 million or $3.21 per fully diluted share and a non-cash gain of $12.2 million or $0.29 per fully diluted share associated with the valuation of interest rate swaps. Excluding these items Net Income would amount to $151.8 million or $3.60 per fully diluted share.

-- For the second quarter of 2008 the Company reported adjusted EBITDA(1), excluding vessel gains and a non-cash gain on interest rate swaps, of $199.2 million.

-- In July 2008 the Company declared its thirteenth consecutive quarterly cash dividend of $0.20 per common share.

Drys was expected to earn $4.56 per share....and they came in with $3.60 after all the gains from the sale of ships and pre tax gains.

This is very concerning....but the question you have to ask yourself, is the miss already priced into the stock? Last earnings report Drys ran over $100 and now its all the way back to $70.

Technicals: $66 must hold! Would go long on a close over $85