Mark Holder
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Mark Holder in Out Fox The $treet,

Diamond Offshore: Typical Beat With No Upside


Diamond Offshore (DO) is trading up about 2% today based on the typical beat followed by no improvement in rig contract prospects. The company reported the following results per Briefing.com

  • Q1 (Mar) earnings of $0.64 per share, $0.36 better than the Capital IQ Consensus of $0.28; 
  • Revenues fell 24.0% year/year to $471 mln vs the $413.66 mln Capital IQ Consensus.  

The offshore rig operator trades roughly 50% off the lows though the end market hasn't improved. Analysts forecast a profitable outcome in 2017 making the stock less risky, but the returns will be muted on any rally in oil and the sector.  

Disclosure: No position