It has been about a month since the last earnings report for Diamond Offshore Drilling (DO - Free Report) . Shares have lost about 17.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Diamond Offshore Drilling due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Diamond Offshore Posts Narrower-Than-Expected Q1 Loss
Diamond Offshore Drilling reported first-quarter 2019 adjusted loss of 53 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 61 cents. The company reported a loss of 16 cents in the year-ago quarter.
Total revenues amounted to $233.5 million, down from $296 million in the year-ago quarter. The figure also missed the Zacks Consensus Estimate of $228 million.
The quarterly results were affected by reduced dayrates and rig utilization from floaters as well as lower revenues in the Contract Drilling segment.
Floaters recorded an average dayrate of $309,000 compared with $351,000 in the year-ago quarter. Rig utilization for floaters fell to 48% from 52% in the prior-year quarter.
In the first quarter, revenues in the Contract Drilling segment plunged 21.3% year over year to approximately $226.7 million.
As of Mar 31, 2019, Diamond Offshore had approximately $122.8 million in cash and cash equivalents, while long-term debt totaled $1,974.4 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -37.73% due to these changes.
Currently, Diamond Offshore Drilling has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Diamond Offshore Drilling has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.