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Diamond Offshore Drilling (DO) Down 19.4% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Diamond Offshore Drilling, Inc. (DO - Free Report) . Shares have lost about 19.4% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
Diamond Offshore Drilling reported fourth-quarter 2016 adjusted earnings of $0.53 per share that comfortably surpassed the Zacks Consensus Estimate of $0.12. Initiatives for cost control, along with improving efficiencies for rigs, resulted in the better-than-expected earnings. Considerably low contributions from the jackups partially offset the positive. The bottom line, however, decreased from the year-earlier earnings of $0.89 per share.
Total revenue in the quarter of $391.9 million decreased from the year-ago figure of $555.6 million but came in above the Zacks Consensus Estimate of $357.5 million.
Operational Performance
In the fourth quarter, revenues from the Contract Drilling segment plunged 27.8% year over year to approximately $384.6 million.
Ultra-Deepwater floaters recorded an average dayrate of $456,000 during the quarter as against $531,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $287,000 compared with $337,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $478,000 as against $249,000 in the prior-year quarter.
Rig utilization for Ultra-Deepwater floaters decreased to 49% from 70% in the year-ago quarter. Utilization of Deepwater floaters fell to 39% from 42% a year ago. Mid-water category rig utilization was 35% as against 24% in the comparable quarter last year.
Financials
As of Dec 31, 2016, Diamond Offshore had approximately $156.2 million in cash and cash equivalents, while long-term debt totaled $1,980.9 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Diamond Offshore Drilling, Inc. Price and Consensus
At this time, Diamond Offshore Drilling's stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. Charting a somewhat similar path, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Diamond Offshore Drilling (DO) Down 19.4% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Diamond Offshore Drilling, Inc. (DO - Free Report) . Shares have lost about 19.4% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
Diamond Offshore Drilling reported fourth-quarter 2016 adjusted earnings of $0.53 per share that comfortably surpassed the Zacks Consensus Estimate of $0.12. Initiatives for cost control, along with improving efficiencies for rigs, resulted in the better-than-expected earnings. Considerably low contributions from the jackups partially offset the positive. The bottom line, however, decreased from the year-earlier earnings of $0.89 per share.
Total revenue in the quarter of $391.9 million decreased from the year-ago figure of $555.6 million but came in above the Zacks Consensus Estimate of $357.5 million.
Operational Performance
In the fourth quarter, revenues from the Contract Drilling segment plunged 27.8% year over year to approximately $384.6 million.
Ultra-Deepwater floaters recorded an average dayrate of $456,000 during the quarter as against $531,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $287,000 compared with $337,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $478,000 as against $249,000 in the prior-year quarter.
Rig utilization for Ultra-Deepwater floaters decreased to 49% from 70% in the year-ago quarter. Utilization of Deepwater floaters fell to 39% from 42% a year ago. Mid-water category rig utilization was 35% as against 24% in the comparable quarter last year.
Financials
As of Dec 31, 2016, Diamond Offshore had approximately $156.2 million in cash and cash equivalents, while long-term debt totaled $1,980.9 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Diamond Offshore Drilling, Inc. Price and Consensus
Diamond Offshore Drilling, Inc. Price and Consensus | Diamond Offshore Drilling, Inc. Quote
VGM Scores
At this time, Diamond Offshore Drilling's stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. Charting a somewhat similar path, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.