Diamond Offshore Drilling, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Diamond Offshore Drilling, Inc. (NYSE:DO) will unveil its latest earnings on Thursday, October 20, 2011. 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 net income of $1.47 per share, a rise of 2.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.50. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.47 during the last month. For the year, analysts are projecting profit of $6.13 per share, a decline of 10.8% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of $1.92 a share versus the estimate of profit of $1.90 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 2.6% in revenue from the year-earlier quarter to $820.8 million.

Analyst Ratings: Analysts seem relatively indifferent about Diamond Offshore Drilling with 13 of 24 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 18.8% to $266.6 million ($1.92 a share) from $224.4 million ($1.61 a share) the year earlier, exceeding analyst expectations. Revenue rose 8.1% to $889.5 million from $822.6 million.

Key Stats:

A year-over-year revenue increase in the second quarter snapped a streak of three consecutive quarters of revenue declines. Revenue fell 6.2% in the first quarter, 5.6% in the fourth quarter of the last fiscal year and 12% in the third quarter of the last fiscal year.

The increase in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit decreases. Net income dropped 13.8% in the first quarter, 12.5% in the fourth quarter of the last fiscal year and 45.5% in the third quarter of the last fiscal year.

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 July 21, 2011 to October 14, 2011, the stock price had fallen $9.17 (-13.2%) from $69.32 to $60.15. 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% (+$7.67) 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% (-$5.14) over that span. Shares are down $4.32 (-6.7%) year to date.

(Source: Xignite Financials)

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