NEW YORK (TheStreet) -- Seadrill (SDRL) - Get Report stock is advancing 11.11% to $3.40 in early afternoon trading on Wednesday after oil prices increased, but shares could be pressured before tomorrow's market open if the offshore drilling contractor's 2016 first quarter financial results fail to meet expectations.

Wall Street is expecting the Bermuda-based company to deliver a steep decline in earnings per share and revenue.

Analysts have estimated earnings of 38 cents per share on revenue of $893.48 million for the latest quarter, compared with earnings of 86 cents per share on $1.24 billion in revenue for the same quarter last year.

Oil prices are rising today after domestic crude stockpiles declined more than expected.

U.S. commercial crude oil inventories dropped by 4.2 million barrels last week, according to data from the Energy Information Administration. Analysts surveyed by Reuters had estimated stockpiles would fall by 2.5 million barrels.

WTI crude is up 0.58% to $48.90 per barrel on the New York Mercantile Exchange, while Brent crude is increasing 1.09% to $49.14 per barrel on the Intercontinental Exchange this afternoon.

Separately, Seadrill has a "sell" and a letter grade of D at TheStreet Ratings because of the company's generally high debt management risk, weak return on equity and disappointing stock performance.

You can view the full analysis from the report here: SDRL

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 article's author.

Image placeholder title