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Diamond Offshore's (DO) Q2 Earnings & Revenues Top Estimates
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Diamond Offshore Drilling Inc. (DO - Free Report) reported second-quarter 2017 adjusted earnings of 45 cents per share that comfortably surpassed the Zacks Consensus Estimate of 24 cents. The bottom line also increased from the year-earlier earnings of 16 cents. The growth can be attributed to lower expenses and higher ultra-Deepwater and Mid-water floaters dayrate realization.
Total revenue in the quarter of $399.3 million came higher than the year-over-year number of $388.7 million. The top line outpaced the Zacks Consensus Estimate of $386.9 million.
Diamond Offshore Drilling, Inc. Price and EPS Surprise
In the second quarter, revenues from the Contract Drilling segment rose 9.7% year over year to approximately $392.2 million.
Ultra-Deepwater floaters recorded an average dayrate of $436,000 during the quarter, down from $452,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $270,000, compared with $301,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $397,000, up from $313,000 in the prior-year quarter. Jackup rig dayrates averaged $75,000, down from $335,000 in the second quarter of 2016.
Rig utilization for Ultra-Deepwater floaters increased to 59% from 47% in the year-ago quarter. Utilization of Deepwater floaters rose to 45% from 35% a year ago. Mid-water category rig utilization was 20% as against 30% in the comparable quarter last year, while jackup rig utilization increased to 86% from 13%.
Financials
As of Jun 30, Diamond Offshore had approximately $161 million in cash and cash equivalents, while long-term debt totaled $1,981.5 million.
Zacks Rank
Currently, Diamond Offshore carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Enbridge Energy, LP , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . While Braskem and TransCanada sport a Zacks Rank #1 (Strong Buy), Enbridge Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters, with an average positive earnings surprise of 38.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending Sep 2016.
TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters, with an average positive earnings surprise of 1.06%.
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Diamond Offshore's (DO) Q2 Earnings & Revenues Top Estimates
Diamond Offshore Drilling Inc. (DO - Free Report) reported second-quarter 2017 adjusted earnings of 45 cents per share that comfortably surpassed the Zacks Consensus Estimate of 24 cents. The bottom line also increased from the year-earlier earnings of 16 cents. The growth can be attributed to lower expenses and higher ultra-Deepwater and Mid-water floaters dayrate realization.
Total revenue in the quarter of $399.3 million came higher than the year-over-year number of $388.7 million. The top line outpaced the Zacks Consensus Estimate of $386.9 million.
Diamond Offshore Drilling, Inc. Price and EPS Surprise
Diamond Offshore Drilling, Inc. Price and EPS Surprise | Diamond Offshore Drilling, Inc. Quote
Operational Performance
In the second quarter, revenues from the Contract Drilling segment rose 9.7% year over year to approximately $392.2 million.
Ultra-Deepwater floaters recorded an average dayrate of $436,000 during the quarter, down from $452,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $270,000, compared with $301,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $397,000, up from $313,000 in the prior-year quarter. Jackup rig dayrates averaged $75,000, down from $335,000 in the second quarter of 2016.
Rig utilization for Ultra-Deepwater floaters increased to 59% from 47% in the year-ago quarter. Utilization of Deepwater floaters rose to 45% from 35% a year ago. Mid-water category rig utilization was 20% as against 30% in the comparable quarter last year, while jackup rig utilization increased to 86% from 13%.
Financials
As of Jun 30, Diamond Offshore had approximately $161 million in cash and cash equivalents, while long-term debt totaled $1,981.5 million.
Zacks Rank
Currently, Diamond Offshore carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Enbridge Energy, LP , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . While Braskem and TransCanada sport a Zacks Rank #1 (Strong Buy), Enbridge Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters, with an average positive earnings surprise of 38.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending Sep 2016.
TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters, with an average positive earnings surprise of 1.06%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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