Diamond Offshore Drilling Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Diamond Offshore Drilling, Inc. (NYSE:DO) will unveil its latest earnings on Thursday, February 2, 2012. 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 estimate of analysts is for profit of 99 cents per share, a decline of 43.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 98 cents. Between one and three months ago, the average estimate moved up. It has dropped from $1.01 during the last month. For the year, analysts are projecting net income of $6.48 per share, a decline of 5.7% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 38 cents, reporting profit of $1.85 per share against a mean estimate of net income of $1.47 per share.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 12.2% in revenue from the year-earlier quarter to $738.3 million.

Analyst Ratings: Analysts seem relatively indifferent about Diamond Offshore Drilling with 12 of 22 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 29.4% to $256.9 million ($1.85 a share) from $198.5 million ($1.43 a share) the year earlier, exceeding analyst expectations. Revenue rose 9.8% to $878.2 million from $799.7 million.

Key Stats:

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 5.5%. The quarter with the biggest boost was the most recent quarter, which saw a 29.4% surge.

The company’s revenue has risen for two straight quarters. In the second quarter, the figure rose 8.1%.

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).

Stock Price Performance: During December 28, 2011 to January 27, 2012, the stock price had risen $7.23 (13%) from $55.53 to $62.76. The stock price saw one of its best stretches over the last year between January 9, 2012 and January 19, 2012 when shares rose for eight-straight days, rising 10.7% (+$6) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven-straight days, falling 10% (-$5.91) over that span.

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

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