Seeing as how we're in the middle of earnings season, several stocks are in the spotlight due to earnings as well as other meaningful news. Among the stocks trending after hours include DryShips Inc. (NASDAQ:DRYS), Transocean Ltd (Switzerland) (NYSE:RIG), Clementia Pharmaceuticals Inc. (NASDAQ:CMTA), EnerSys (NYSE:ENS), and Akamai Technologies Inc. (NASDAQ:AKAM). Let's dive in more in depth.
[caption id="attachment_389952" align="aligncenter" width="750"] weerasak saeku/Shutterstock.com[/caption]
For those of you interested in potentially partly diversifying your portfolio with hedge fund picks, check out the Insider Monkey quarterly newsletter (click the link for more details) ,which was up 121% since inception in May 2014 through the end of August of this year. Hedge funds often have the best in terms of analysts and research capabilities.
Traders are watching DryShips Inc. (NASDAQ:DRYS) after the company reported adjusted EPS of $0.07 and GAAP EPS of $0.12. Sales rose 65.8% year over year to $49.56 million and the company reported adjusted EBITDA of $17.2 million for Q3. The company also announced that it agreed to buy four vessels "from entities that may be deemed to be beneficially owned by the Company’s Chairman and Chief Executive Officer, Mr. George Economou" for around $198.5 million. The vessel purchases were approved by independent directors from the company's board. DryShips Inc. (NASDAQ:DRYS) shares are in the green after hours.
Another sea related company, Transocean Ltd (Switzerland) (NYSE:RIG) reported earnings, with the company reporting an adjusted profit of $0.06 per share, versus estimates of negative $0.10 per share as expected by the Street. Sales beat estimates, with revenue for the period of $816 million, up 1% year over year, exceeding the consensus by $37.92 million. Revenue efficiency came in at 95.2% versus 97.4% in the prior quarter while adjusted normalized EBITDA margin was 42%, versus 40% in the prior quarter. Transocean's contract backlog was $11.5 billion as of the October 2018 Fleet Status Report. CEO Jeremy Thigpen said “In preparation for an offshore recovery, during the quarter, we also continued the high-grading of our fleet by announcing our agreement to acquire Ocean Rig". The company agreed to buy Ocean Rig in a cash and stock deal at around $2.7 billion including Ocean Rig's net debt during the third quarter. 33 top funds were long Transocean Ltd (Switzerland) (NYSE:RIG) at the end of the second quarter, up four from the end of the previous quarter. We track around 650 elite funds in total.
Clementia Pharmaceuticals Inc. (NASDAQ:CMTA) is trending after the company announced a proposed public offering of common shares. The company which focuses on ultra-rare bone disorders and other diseases, intends to offer and sell, subject to market conditions, $50 million of common shares in an underwritten public offering. Morgan Stanley and Leerink Partners are the book runners. Eleven elite funds that we track owned over 180 million dollars worth of Clementia Pharmaceuticals Inc. (NASDAQ:CMTA) at the end of June.
Speaking about the capital markets, EnerSys (NYSE:ENS) is in the spotlight after the company agreed to buy Alpha Technologies group for $750 million. Management has already identified $25 million in run-rate synergies, and believes the purchase will expand EnerSys' total addressable market to over $20 billion. In terms of its specifics, Alpha generated $591 million in sales for the last twelve months ended June 30, with 11% adjusted EBITDA margin. The transaction enterprise value would be hence around 11.1x Alpha's LTM adjusted EBITDA. EnerSys (NYSE:ENS) was slightly in the red on Monday before the news.
Akamai Technologies Inc. (NASDAQ:AKAM) shares have surged almost 9% in after hours after the company reported strong third quarter results. Adjusted EPS came in at $0.94 (versus estimates of $0.83) while sales came in at $669.63 million, up 7.2% year over year, and $5.37 million ahead of the consensus. In more good news, the company's board authorized a multi-year $1.1 billion share repurchase program in addition to the $124 million remaining in the board's prior authorization. AKAM's results were especially notable in terms of its cloud security solutions group, which grew 37% to around $700 million in terms of annualized run rate. In terms of smart money sentiment, the total number of elite funds in Akamai Technologies Inc. (NASDAQ:AKAM) held steady at 28 from Q1 to Q2.