Diamond Offshore Drilling Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Diamond Offshore Drilling, Inc. (NYSE:DO) will unveil its latest earnings on Tuesday, February 5, 2013. Diamond Offshore Drilling offers a range of services worldwide in various oil and gas drilling markets, including the deep water, harsh environment, conventional semisubmersible, and jack-up markets.

Diamond Offshore Drilling, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.10 per share, a decline of 19.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.14. Between one and three months ago, the average estimate moved down. It has risen from $1.09 during the last month. Analysts are projecting profit to rise by 32.5% compared to last year’s $4.67.

Past Earnings Performance: Last quarter, the company beat estimates by 27 cents, coming in at net income of $1.28 a share versus the estimate of profit of $1.01 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit fell 30.6% to $178.2 million ($1.28 a share) from $256.9 million ($1.85 a share) the year earlier, but exceeded analyst expectations. Revenue fell 17% to $729.1 million from $878.2 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.85 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 5.21 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 10.3% to $432.7 million while assets rose 2.7% to $2.1 billion.

Analyst Ratings: There are mostly holds on the stock with 14 of 22 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 17% in the second quarter and dropped again in the third quarter.

Wall St. Revenue Expectations: On average, analysts predict $740 million in revenue this quarter, a decline of 1.1% from the year-ago quarter. Analysts are forecasting total revenue of $2.98 billion for the year, a decline of 10.2% from last year’s revenue of $3.32 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)