How Did Diamond Offshore Drilling’s Share Price React to Earnings?

Diamond Offshore Drilling released its financial information for fiscal 4Q15 on February 8, 2016. Its stock reacted somewhat positively immediately following the earnings release. On that day, it rose 1.5% to $19.14 from the previous day’s close. Since the beginning of this year, its share price is down 12%.

Patterson-UTI Energy (PTEN), Diamond Offshore Drilling’s peer in the oilfield equipment and services (or OFS) industry, released its financial information for fiscal 4Q15 on February 4. PTEN’s share price rose 8.4% on the day of its latest earnings results. Diamond Offshore Drilling makes up 3.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES).

In the past year, Diamond Offshore Drilling’s stock has returned -43% (net of dividends) as of February 8. Diamond Offshore Drilling has underperformed the VanEck Vectors Oil Services ETF (OIH), which has returned -34%. The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has given a -28% return. Diamond Offshore Drilling, however, has outperformed the US offshore rig count, which returned -48% in the past year.

Diamond Offshore Drilling has also significantly underperformed the SPDR S&P 500 ETF (SPY), which has returned -8% during the same period. DO is 0.01% of SPY. Read Market Realist’s article Could Higher Utilization Improve Diamond Offshore’s Outlook? to learn why Diamond Offshore Drilling has underperformed the industry.

Next, we’ll discuss Wall Street analysts’ targets for Diamond Offshore Drilling.