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Key Takeaways from Diamond’s 3Q15 Earnings and Conference Call

Sue Goodridge - Author
By

Dec. 4 2020, Updated 10:52 a.m. ET

Rising revenue, rising EBITDA

Diamond Offshore Drilling’s (DO) stock showed a 5% rise as of November 5, 2015, after the company released its 3Q15 earnings on November 2. The company’s revenues fell to $609 million from the $634 million it recorded in the second quarter. On the other hand, due to the company’s cost control measures, its 3Q15 EBITDA (earnings before interest, tax, depreciation, and amortization) rose to $299 million from $257 million in the previous quarter.

[marketrealist-chart id=801316]

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Actual versus estimates

In 3Q15, Diamond’s revenue and EBITDA were higher than Wall Street analyst estimates. The company’s revenues were also 2% higher than the estimated $595 million, whereas its EBITDA was 23% higher than the analyst estimate of $244 million.

Meanwhile, Noble Corporation (NE), Rowan Companies (RDC), and Ensco (ESV), which released their earnings one week before Diamond Offshore, also beat EBITDA estimates. Investors can view detailed analysis of these peer companies’ results via the following Market Realist links:

  • Noble Corporation’s 3Q15 results—https:\/\/marketrealist\.com/2015/10/noble-beat-analysts-estimates-3q15/
  • Rowan Companies’ 3Q15 results—https:\/\/marketrealist\.com/2015/11/key-takeaways-rowans-3q15-earnings-conference-call/
  • Ensco’s 3Q15 results—https:\/\/marketrealist\.com/2015/11/key-takeaways-enscos-3q15-earnings/
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Stock performance

In the same period, other offshore drilling (IYE) (OIH) (XLE) companies saw their stocks fall. Noble Corporation (NE), Transocean (RIG), Rowan Companies (RDC), and Pacific Drilling (PACD) fell by 3.2%, 7.3%, 2.7%, and 3.5%, respectively.

What you’ll find in this series

In this series, we’ll look at Diamond Offshore’s 3Q15 results and conference call highlights. We’ll also analyze the company’s current position, its management’s plans for the future, and discussions between its management and its analysts.

Continue to the next part of this series for a look at Diamond Offshore’s 3Q15 rig performance and expected revenues for 4Q15.

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