NEW YORK (TheStreet) -- Ensco (ESV) shares are up by 3.34% to $17.64 in afternoon trading on Tuesday, ahead of the release of the offshore contract drilling company's second quarter earnings results, due out after the closing bell tomorrow.

The UK-based company is expected to report earnings of $1.03 per share on revenue of $1 billion for the most recent quarter.

Ensco reported earnings of $1.35 per share in the year ago period, missing analysts' expectations of $1.47 per share by 12 cents.

Revenue expectations for the quarter are below the $1.2 billion the company generated in the same period last year.

Analysts at Zacks are concerned about the oversupply of oil rigs in the market as oil company's continue to slash their capex budgets amid the steep downturn in crude prices.

"Ensco's most pressing concern, at least for the short term, is the oversupply in the rig market. With large, multinational energy firms looking to rein in their skyrocketing capital expenses, the offshore drilling space is likely to see intense competition, as multiple firms chase a single contract. This excess capacity, in turn, has led to lower utilization or dayrates," Zacks analysts said.

Separately, TheStreet Ratings team rates ENSCO PLC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate ENSCO PLC (ESV) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself."

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