Diamond Offshore Drilling 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 19, 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 analyst estimate is for net income of 88 cents per share, a decline of 54.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 98 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 88 cents during the last month. Analysts are projecting profit to rise by 38.2% compared to last year’s $4.28.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 24 cents, reporting profit of $1.22 per share against a mean estimate of net income of 98 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 17.5% in revenue from the year-earlier quarter to $734.1 million.

Stock Price Performance: From June 14, 2012 to July 13, 2012, the stock price rose $4.04 (6.8%), from $59.31 to $63.35. 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, increasing 10.7% (+$6) over that span. It saw one of its worst periods between May 7, 2012 and May 16, 2012 when shares fell for eight straight days, dropping 8.2% (-$5.31) over that span.

Analyst Ratings: There are mostly holds on the stock with 11 of 19 analysts surveyed giving that rating.

A Look Back: In the first quarter, profit fell 1.8% to $185.2 million ($1.33 a share) from $188.5 million ($1.35 a share) the year earlier, but exceeded analyst expectations. Revenue rose 2.7% to $768.6 million from $748.4 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.2 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Competitors to Watch: Transocean, Helmerich & Payne, Inc., Patterson-UTI Energy, Inc., Noble, Atwood Oceanics, Inc., Vantage Drilling Company, Rowan Companies, Inc., and Hercules Offshore, Inc.

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

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