What Does Wall Street See for Diamond Offshore Drilling's Q4?

Diamond Offshore Drilling (NYS: DO) is expected to report Q4 earnings on Jan. 31. 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 drop -1.6% and EPS will wither -19.1%.

The average estimate for revenue is $736.7 million. On the bottom line, the average EPS estimate is $1.10.


Revenue details
Last quarter, Diamond Offshore Drilling tallied revenue of $729.1 million. GAAP reported sales were 17% lower than the prior-year quarter's $861.5 million.

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 $1.28. GAAP EPS of $1.28 for Q3 were 31% lower than the prior-year quarter's $1.85 per share.

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 50.0%, 460 basis points worse than the prior-year quarter. Operating margin was 34.3%, 630 basis points worse than the prior-year quarter. Net margin was 25.0%, 480 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.97 billion. The average EPS estimate is $4.70.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,930 members out of 1,975 rating the stock outperform, and 45 members rating it underperform. Among 460 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 445 give Diamond Offshore Drilling a green thumbs-up, and 15 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 $72.16.

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The article What Does Wall Street See for Diamond Offshore Drilling's Q4? 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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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