Earnings Preview: Diamond Offshore Drilling's EPS, Revenue Expected to Rise

Diamond Offshore Drilling (NYSE: DO) releases its next round of earnings this Thursday, October 20, 2011. Here is Benzinga's everything-that-matters guide for this Thursday's third quarter earnings announcement.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of $1.47/share and revenues of $820.8 million. Diamond Offshore Drilling's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.43/share on revenues of $799.7 million. We'll have to wait for Thursday to see if Diamond Offshore Drilling reports higher EPS and a slight increase in revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Diamond Offshore Drilling were trading at $60.15 as of October 14, 2011. Shares are down 6.7% year to date. For a full 12 months, the return has declined by 6.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Diamond Offshore Drilling is a Moderate Sell. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how some of the other energy companies are doing? Here are a few of Diamond Offshore Drilling's peers in that sector.

• Atwood Oceanics (NYSE: ATW): Moderate Buy with a $1.15 recent quarter EPS
• Hercules Offshore (NASDAQ: HERO): Hold with a -$0.11 recent quarter EPS
• Helmerich & Payne (NYSE: HP): Hold with a $1.00 recent quarter EPS

The oil and gas drilling company's industry has seen price/earnings growth of 1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Diamond Offshore Drilling offers a range of services worldwide in various oil and gas drilling markets, including the deep water, harsh environment, conventional semisubmersible, and jack-up markets.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Diamond Offshore Drilling earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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