Diamond Offshore Drilling (NYSE: DO) is expected to report Q2 earnings on July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Diamond Offshore Drilling's revenues will compress 17.2% and EPS will contract 53.1%.

The average estimate for revenue is $736.5 million. On the bottom line, the average EPS estimate is $0.90.

Revenue details
Last quarter, Diamond Offshore Drilling chalked up revenue of $768.6 million. GAAP reported sales were 4.3% lower than the prior-year quarter's $788.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.33. 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.

Recent performance
For the preceding quarter, gross margin was 47.4%, 670 basis points worse than the prior-year quarter. Operating margin was 31.8%, 830 basis points worse than the prior-year quarter. Net margin was 24.5%, 730 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $3.03 billion. The average EPS estimate is $4.23.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,969 members out of 2,015 rating the stock outperform, and 46 members rating it underperform. Among 406 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 390 give Diamond Offshore Drilling a green thumbs-up, and 16 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 $66.43.

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