Ocean Rig UDW Earnings: Here’s Why Investors are Buying Shares Now

Ocean Rig UDW (NASDAQ:ORIG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.37%.

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Ocean Rig UDW Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.05 in the quarter versus EPS of $-0.30 in the year-earlier quarter.

Revenue: Rose 51.17% to $246.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ocean Rig UDW reported adjusted EPS income of $0.05 per share. By that measure, the company beat the mean analyst estimate of $-0.20. It beat the average revenue estimate of $223.23 million.

Quoting Management: George Economou, Chairman and Chief Executive Officer of the Company commented: “During the first quarter of 2013, our results were adversely impacted by the scheduled drydock, for contract-related upgrades, of the Leiv Eiriksson which commenced drilling operations for Rig Management Consortium offshore Norway on April 15th 2013. During the quarter, we also experienced certain blowout preventer- related downtime with respect to Eirik Raude and the Ocean Rig Mykonos which resulted in low operating efficiency for those two units. Our remaining four ultra-deepwater (“UDW”) units performed at an average of 97% operating efficiency during the quarter, which we find satisfactory.”

Key Stats (on next page)…

Revenue increased 7.25% from $229.75 million in the previous quarter. EPS increased to $0.05 in the quarter versus EPS of $-0.21 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.14 to a profit $0.02. For the current year, the average estimate has moved down from a profit of $0.97 to a profit of $0.15 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)