Will These Numbers From Diamond Offshore Drilling Be Good Enough for You?

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Diamond Offshore Drilling (NYS: 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.

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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.

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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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The article Will These Numbers From Diamond Offshore Drilling Be Good Enough for You? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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