Diamond Offshore Drilling Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Diamond Offshore Drilling Inc. (NYSE:DO) will unveil its latest earnings on Thursday, July 21, 2011. Diamond Offshore Drilling, Inc. 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 $1.89 per share, a rise of 17.4% 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 $1.76. For the year, analysts are projecting net income of $6.51 per share, a decline of 5.2% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of $1.80 per share versus a mean estimate of net income of $1.44 per share.

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Wall St. Revenue Expectations: On average, analysts predict $871.8 million in revenue this quarter, a rise of 6% from the year ago quarter. Analysts are forecasting total revenue of $3.28 billion for the year, a decline of 1.2% from last year’s revenue of $3.32 billion.

Analyst Ratings: Analysts seem relatively indifferent about Diamond Offshore Drilling with 15 of 26 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 6.2% to $806.4 million in first quarter. The figure fell 5.6% in the fourth quarter of the last fiscal year from the year earlier, dropped 12% in third quarter of the last fiscal year from the year-ago quarter and 13.1% in the second quarter of the last fiscal year.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 28.5% over the past four quarters. The quarter hit the hardest was the third quarter of the last fiscal year, that saw a 45.5% drop.

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 April 19, 2011 to July 15, 2011, the stock price had fallen $3.99 (-5.4%) from $74.45 to $70.46. The stock price saw one of its best stretches over the last year between October 29, 2010 and November 10, 2010 when shares rose for nine-straight days, rising 12% (+$7.78) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 7.1% (-$5.20) over that span. Shares are up $5.16 (+7.9%) year to date.

(Source: Xignite Financials)

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