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Diamond Offshore (DO) Down 14.4% 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 14.4% 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 catalysts.
Diamond Offshore Beats on Q1 Earnings and Revenues
Diamond Offshore Drilling’s first-quarter 2017 adjusted earnings of $0.17 per share comfortably surpassed the Zacks Consensus Estimate of $0.12. Lower operating expenses during the quarter led to the outperformance.
The bottom line, however, decreased from the year-ago earnings of $0.64 per share. The decrease was mainly due to lower dayrate from ultra-deepwater floaters, deepwater floaters and jack-ups.
Total revenue of $374.2 million for the first quarter was lower than the year-ago figure of $470.5 million. However, the top line beat the Zacks Consensus Estimate of $373.6 million.
Operational Performance
In the first quarter, revenues from the Contract Drilling segment plunged 20.5% year over year to approximately $363.6 million.
Ultra-Deepwater floaters recorded an average dayrate of $450,000 as against $533,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $260,000 compared with $334,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $268,000 versus $263,000 in the prior-year quarter. Jackup rig dayrates averaged $75,000 as against $118,000 in the first quarter of 2016.
Rig utilization for Ultra-Deepwater floaters decreased to 50% from 61% in the year-ago quarter. Utilization of Deepwater floaters increased to 48% from 28% a year ago. Mid-water category rig utilization was 40% as against 25% in the comparable quarter last year. Jackup rig utilization decreased significantly to 29% from 18%.
Financials
As of Mar 31, 2017, Diamond Offshore had approximately $123.3 million in cash and cash equivalents, while long-term debt was $1,981.2 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been eight revisions lower for the current quarter. In the past month, the consensus estimate has shifted down by 18.7% due to these changes.
Diamond Offshore Drilling, Inc. Price and Consensus
At this time, the stock has a nice Growth Score of 'B', however its Momentum is doing a bit better with an 'A'. 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 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, 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 (DO) Down 14.4% 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 14.4% 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 catalysts.
Diamond Offshore Beats on Q1 Earnings and Revenues
Diamond Offshore Drilling’s first-quarter 2017 adjusted earnings of $0.17 per share comfortably surpassed the Zacks Consensus Estimate of $0.12. Lower operating expenses during the quarter led to the outperformance.
The bottom line, however, decreased from the year-ago earnings of $0.64 per share. The decrease was mainly due to lower dayrate from ultra-deepwater floaters, deepwater floaters and jack-ups.
Total revenue of $374.2 million for the first quarter was lower than the year-ago figure of $470.5 million. However, the top line beat the Zacks Consensus Estimate of $373.6 million.
Operational Performance
In the first quarter, revenues from the Contract Drilling segment plunged 20.5% year over year to approximately $363.6 million.
Ultra-Deepwater floaters recorded an average dayrate of $450,000 as against $533,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $260,000 compared with $334,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $268,000 versus $263,000 in the prior-year quarter. Jackup rig dayrates averaged $75,000 as against $118,000 in the first quarter of 2016.
Rig utilization for Ultra-Deepwater floaters decreased to 50% from 61% in the year-ago quarter. Utilization of Deepwater floaters increased to 48% from 28% a year ago. Mid-water category rig utilization was 40% as against 25% in the comparable quarter last year. Jackup rig utilization decreased significantly to 29% from 18%.
Financials
As of Mar 31, 2017, Diamond Offshore had approximately $123.3 million in cash and cash equivalents, while long-term debt was $1,981.2 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been eight revisions lower for the current quarter. In the past month, the consensus estimate has shifted down by 18.7% due to these changes.
Diamond Offshore Drilling, Inc. Price and Consensus
Diamond Offshore Drilling, Inc. Price and Consensus | Diamond Offshore Drilling, Inc. Quote
VGM Scores
At this time, the stock has a nice Growth Score of 'B', however its Momentum is doing a bit better with an 'A'. 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 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.