Here's Why Diamond Offshore Stock Fell 10% Despite Earnings Beat
Shares of offshore drilling contractor Diamond Offshore Drilling (NYSE: DO) are down 9.8% at 12:25 p.m. EST today, following the release of the company's fourth-quarter and full-year 2019 results before market open. Today's big sell-off came even after the company reported generally improved results year over year, including 9% higher revenue, 30% smaller operating losses, and $1.6 billion in contracted backlog.
Image source: Getty Images.
Diamond continues to lose money -- that was expected in what remains a tough environment for offshore drillers -- but the company did show important progress in cutting those losses and growing its backlog. Diamond also generated positive operating cash flow in 2019, though at a lower rate than the prior year.
Source Fool.com
