anxious condition of late, which has seen high-beta dry-bulk shares fall sharply along with commodities-related names all over the world, from mining conglomerates to steel producers. Genco, based in New York but run by the Greek magnate Peter Georgiopoulos, said it earned $34.3 million, or $1.10 a share, in the just-ended quarter, beating by 9 cents the consensus estimate provided by 13 research analysts. Revenue came to $92.9 million, also surpassing the Wall Street forecast, which had pegged a top line of about $91 million. Year-over-year comparisons remain difficult. In the third quarter of 2008, before the shipping business entered a historic perfect storm in the form of the financial crisis and recession, Genco earned $63 million, or $2.00 a share, on revenue of $107.6 million. Genco's beat likely derived from lower-than-expected operating costs and interest expense, Chappell said, though both figures increased compared to a year ago, when the company operated fewer ships. During the quarter, the company took delivery of two capesize-class ships, the biggest dry-bulk haulers in existence. Many market participants worry that so many such newbuildings are currently slated for delivery this year and next that a glut may very well develop, busting shipping rates once again. Genco has about 75% of its fleet locked into long-term contracts for the rest of 2009. For 2010, though, the portion drops to 45%. Chappell noted, however, that Genco will likely grow more conservative in the coming months, moving 50% or more of its fleet into long-term charters for 2010.
In after-hours trading Wednesday, Genco shares continued to slide after losing 5.3% in the regular session. The stock was recently changing hands at $18.95, down 2 cents from its official Wednesday close. On Monday, DryShips ( DRYS), the first Greek dry bulk concern to go public in 2005 and the first to report third-quarter results this earnings season, also surpassed expectations and reported a "clean quarter," in the words of one shipping-stock investor. -- Written by Scott Eden in New York Follow TheStreet.com on Twitter and become a fan on Facebook.