Diamond Offshore Drilling Inc. DO incurred second-quarter 2019 adjusted loss of 99 cents per share, wider than the Zacks Consensus Estimate of a loss of 89 cents and the year-ago loss of 33 cents as well.

Moreover, total revenues amounted to $217 million, down from $269 million in the year-ago quarter. The figure also missed the Zacks Consensus Estimate of $227 million.

These weaker results were primarily caused by reduced average day-rates and lower rig utilization.

Operational Performance

Rigs recorded an average day-rate of $273,000, lower than $317,000 in the prior year. Moreover, rig utilization slipped to 51% from 53% a year earlier.

In the second quarter, revenues in the Contract Drilling segment dropped 21.8% year over year to approximately $207.3 million.

Diamond Offshore Drilling, Inc. Price, Consensus and EPS Surprise

Diamond Offshore Drilling, Inc. price-consensus-eps-surprise-chart | Diamond Offshore Drilling, Inc. Quote

Financials

As of Jun 30, 2019, Diamond Offshore had approximately $147.5 million in cash and cash equivalents while long-term debt totaled almost $2 billion. The debt-to-capitalization ratio was 24.8%.

Guidance

For the third quarter, the firm anticipates its contract drilling expenses between $205 million and $215 million.

Moreover, the capital budget guidance for the full year is raised $20 million and estimated to be in the range of $360-$380 million.

Zacks Rank & Key Picks

Diamond Offshore Drilling carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Transportadora De Gas Sa Ord B TGS, Halcon Resources Corporation HKRSQ and World Fuel Services Corporation INT. While Transportadora and Halcon Resources sport a Zacks Rank #1 (Strong Buy), World Fuel Services holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Transportadora earnings beat the Zacks Consensus Estimate in the last four quarters.

Halcon Resources earnings beat the Zacks Consensus Estimate in three of the previous four quarters.

World Fuel Services earnings beat the Zacks Consensus Estimate in the trailing four quarters.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
World Fuel Services Corporation (INT) : Free Stock Analysis Report
 
Diamond Offshore Drilling, Inc. (DO) : Free Stock Analysis Report
 
Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report
 
Halcon Resources Corporation (HKRSQ) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research