Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



What to Watch for When Diamond Offshore Reports Second-Quarter Results

Source: Seadrill. 

Diamond Offshore (NYSE: DO  ) is due to report its second-quarter results before markets open on Thursday. The deepwater drilling contractor is expected to earn $0.56 per share on $683.8 million in revenue. However, as important as those numbers are to investors, these are not the only important areas to watch this quarter.

Investors should also pay special attention to the company's utilization rate, as well as to the dayrates it is earning on its rigs. Not only do investors want to see both rise, but they will want to see what the company has to say about the direction the numbers are heading moving forward. Furthermore, investors should pay attention to what Diamond Offshore says about the deepwater market in general, as that could move the stocks of industry peers.

Because of that, Seadrill (NYSE: SDRL  )  investors should also keep an eye on Diamond Offshore's report. The Thursday earnings release could signal what's ahead when Seadrill reports its second-quarter results. If Diamond Offshore disappoints and its outlook is poor, Seadrill's results might also be expected to underperform.

That being said, there are some key differences between the two companies that could have a bigger impact on Diamond Offshore this quarter. In order to help investors better understand what those difference are and what to watch for this quarter, I created the following slide show. It not only details what could drive Diamond Offshore's results, but it shows where the company could improve in order to close in on Seadrill's strengths.

Do you know this energy tax "loophole"?
Seadrill pays a really juicy dividend, but it could be even higher. That's because the company isn't yet taking full advantage of a tax "loophole" that puts more money into the pockets of investors like you. Its a loophole you really need to know. To learn more about it and how you can take advantage of this profitable opportunity, grab our brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3040543, ~/Articles/ArticleHandler.aspx, 9/1/2015 2:11:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Matt DiLallo

Matthew is a Senior Energy and Materials Specialist with The Motley Fool. He graduated from the Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries:

Today's Market

updated 4 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 4:00 PM
DO $23.71 Down -0.58 -2.39%
Diamond Offshore D… CAPS Rating: ***
SDRL $8.04 Up +0.14 +1.77%
Seadrill CAPS Rating: ****