Diamond Offshore Drilling Inc. Earnings Cheat Sheet: Beats Forecasts

S&P 500 (NYSE:SPY) component Diamond Offshore Drilling Inc. (NYSE:DO) reported net income above Wall Street’s expectations for the third quarter. 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.

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Diamond Offshore Drilling Earnings Cheat Sheet for the Third Quarter

Results: Net income for Diamond Offshore Drilling Inc. rose to $256.9 million ($1.85 per share) vs. $198.5 million ($1.43 per share) in the same quarter a year earlier. This marks a rise of 29.4% from the year earlier quarter.

Revenue: Rose 9.8% to $878.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DO beat the mean analyst estimate of $1.47 per share. It beat the average revenue estimate of $820.8 million.

Quoting Management: “We are pleased with our third quarter results, which reflect continued strength in the market,” said Larry Dickerson, President and Chief Executive Officer of Diamond Offshore. “Since the second quarter, we have added 14 new contracts, totaling 18 rig years or $1.4 billion of revenue backlog.” “We continue to execute on initiatives to contain operating costs and minimize unplanned rig repair downtime,” said Dickerson. “Additionally, results benefited from revenues related to the mobilization of a rig from Brazil to the Gulf of Mexico and a shift of some planned downtime into the fourth quarter.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by 36 cents in the first quarter, and by 29 cents in the fourth quarter of the last fiscal year.

Net income has dropped 4.7% year over year on average across the last five quarters. Performance was hurt by a 45.5% decline in the third quarter of the last fiscal year from the year earlier quarter.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 8.1% to $889.5 million from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.39 per share to $1.07, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $6.53 a share to $6.13 over the last ninety days.

Competitors to Watch: Pride International, Inc. (NYSE:PDE), Transocean LTD (NYSE:RIG), Helmerich & Payne, Inc. (NYSE:HP), Patterson-UTI Energy, Inc. (NASDAQ:PTEN), Noble Corporation (NYSE:NE), Atwood Oceanics, Inc. (NYSE:ATW), Vantage Drilling Company (AMEX:VTG), Seahawk Drilling, Inc. (NASDAQ:HAWK), Rowan Companies, Inc. (NYSE:RDC), and Hercules Offshore, Inc. (NASDAQ:HERO).

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(Source: Xignite Financials)