Diamond Offshore Drilling
The 10-second takeaway
For the quarter ended March 31 (Q1), Diamond Offshore Drilling beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Diamond Offshore Drilling reported revenue of $768.6 million. The 19 analysts polled by S&P Capital IQ expected to see revenue of $751.3 million on the same basis. GAAP reported sales were 4.7% lower than the prior-year quarter's $806.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.33. The 26 earnings estimates compiled by S&P Capital IQ averaged $1 per share. GAAP EPS of $1.33 for Q1 were 26% lower than the prior-year quarter's $1.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.3%, 470 basis points worse than the prior-year quarter. Operating margin was 31.2%, 810 basis points worse than the prior-year quarter. Net margin was 24.1%, 700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $746.0 million. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $3.07 billion. The average EPS estimate is $4.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,968 members rating the stock outperform and 45 members rating it underperform. Among 456 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 441 give Diamond Offshore Drilling a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Diamond Offshore Drilling is hold, with an average price target of $67.37.
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