NEW YORK (TheStreet) -- Ensco (ESV) stock is retreating 5.85% to $7.80 on heavy trading volume on Tuesday afternoon after the offshore drilling contractor reported revenue that fell short of estimates for the 2015 fourth quarter. Earnings were better than expected.
Revenue declined 29% year-over-year to $828.3 million for the quarter ended December 31, while analysts surveyed by Thomson Reuters had estimated revenue of $865.6 million.
After yesterday's market close, the company posted earnings of 92 cents per share for the latest quarter, surpassing estimates of 73 cents per share.
Additionally, London-based Ensco lowered its dividend to 1 cent per share, compared with the previous dividend of 15 cents per share.
"As the downturn in the offshore drilling market continues given further declines in commodity prices - we believe it is prudent to take additional steps to increase liquidity and improve capital management flexibility by reducing our dividend," CEO Carl Trowell said in a statement.
So far today, 11.35 million shares of Ensco have exchanged hands, compared with its average daily volume of 7.61 million shares.
Separately, Ensco has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's disappointing return on equity, weak operating cash flow, generally disappointing stock performance and feeble earnings per share growth.
You can view the full analysis from the report here: ESV
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.