Published July 19, 2012
As revenue dropped, Diamond Offshore Drilling's (DO) net income fell in the most recent quarter.
Earnings and Revenue
The company's EPS topped estimates and revenues came in line with Wall Street's expectations. The company reported EPS of $1.45 a share versus the 88 cents a share estimate and revenues of $738.2 million versus the $735 million estimate. The company's reported EPS came in above the high estimate of 21 analysts of a profit of $1.02.
The company's net income for the quarter was $201.5 million. According to the reported number, this is down 24.4% from last year's levels. Revenue fell 17% from $889.5 million in the same period last year.
Company Fundamental Trends
Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 26.1% in the first quarter and 22% in the fourth quarter of the last fiscal year. Last quarter marks the third in a row in which The company has seen falling revenue on a year-over-year basis.
History Against Expectations
The company has now topped analyst estimates for at least the last four quarters. It beat by 24 cents in the first quarter, 37 cents in the fourth quarter of the last fiscal year and 38 cents in the third quarter of the last fiscal year.
"Our contract announcements reflect the continued strength in deep and mid-water markets," said Larry Dickerson, President and Chief Executive Officer of Diamond Offshore. "In particular, we are pleased with the award for the Ocean Onyx, our deepwater semisubmersible rig currently under construction. The Company is currently evaluating another potential project that would deliver a rig with enhanced capabilities, similar to the Ocean Onyx." "Over the past several quarters, our results have also benefitted from our ongoing efforts to control costs and reduce unanticipated rig downtime," said Dickerson. "During the second quarter, we continued to execute on these initiatives, which contributed to our strong operating results."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.