Diamond Offshore Drilling Earnings: EXCEEDS Estimates

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S&P 500 (NYSE:SPY) component Diamond Offshore Drilling Inc. (NYSE:DO) posted a decrease in profit as revenue declined. 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 Second Quarter

Results: Net income for the oil and gas drilling fell to $201.5 million ($1.45 per share) vs. $266.6 million ($1.92 per share) a year earlier. This is a decline of 24.4% from the year-earlier quarter.

Revenue: Fell 17% to $738.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Diamond Offshore Drilling Inc. beat the mean analyst estimate of 88 cents per share. Analysts were expecting revenue of $735 million.

Quoting Management: “Our contract announcements reflect the continued strength in deep and mid-water markets,” said Larry Dickerson, President and Chief Executive Officer of Diamond Offshore. “In particular, we are pleased with the award for the Ocean Onyx, our deepwater semisubmersible rig currently under construction. The Company is currently evaluating another potential project that would deliver a rig with enhanced capabilities, similar to the Ocean Onyx.” “Over the past several quarters, our results have also benefitted from our ongoing efforts to control costs and reduce unanticipated rig downtime,” said Dickerson. “During the second quarter, we continued to execute on these initiatives, which contributed to our strong operating results.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 24 cents in the first quarter, by 37 cents in the fourth quarter of the last fiscal year, and by 38 cents in the third quarter of the last fiscal year.

The company has now seen its net income fall for three quarters in a row. In the first quarter, net income fell 26.1% from the year earlier, while the figure fell 22% in the fourth quarter of the last fiscal year.

Revenue has fallen for the last three quarters in a row. In the first quarter, revenue declined 4.7% to $768.6 million while the figure fell 11% in the fourth quarter of the last fiscal year from the year earlier.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from $1.04 per share to $1.01. For the fiscal year, the average estimate has moved up from $4.25 a share to $4.28 over the last ninety days.

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

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