Transocean (RIG) Stock Declines Despite Earnings Beat as Oil Prices Fall

NEW YORK (TheStreet) -- Transocean (RIG) shares are down 3.95% to $18.23 in trading on Thursday, despite the better than expected earnings the company reported after the closing bell yesterday, as oil prices decline today.

Industry standard Brent crude for June delivery is down 1.39% or 94 cents to $66.83 per barrel while U.S. West Texas crude is also down 1.92% or $1.17 $59.76 per barrel. The fall in prices comes one session after oil prices rose to five month highs yesterday.

Oil prices are declining as the dollar strengthened against foreign currencies today following the release of last weeks jobless benefit claims numbers. Claims rose by just 3,000 to seasonally adjusted number of 265,000, slightly above 262,000 claims that represents a 15 year low.

The company reported a first quarter net loss of $483 million--following the trend of oil companies that reported a net profit a year ago reporting a net loss this year--yielding earnings of $1.10 per share. Analysts on average were expecting the company to report earnings of 64 cents per share.

TheStreet Ratings team rates TRANSOCEAN LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TRANSOCEAN LTD (RIG) a SELL. This is driven by a few notable 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 deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

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