The Houston-based offshore drilling company reported adjusted earnings of 90 cents per share, beating analysts' estimate for 54 cents per share. Revenue of $556 million million topped analysts' forecasts for $517.5 million.
The company paid a charge of $499 million due to the impairment of nine drilling units, Diamond Offshore said. Including the charge, Diamond reported a loss of $1.79 per share.
Additionally, the company discontinued its quarterly cash dividend of about 12 cents per share in order to save $69 million annually.
"Given the severe and prolonged downturn in industry fundamentals, we believe it is prudent to bolster our already strong balance sheet," CEO Marc Edwards said in a statement. "By conserving additional cash, we will have increased flexibility to manage the company through difficult market conditions and position ourselves for the eventual recovery in offshore drilling."
Diamond Offshore stock closed at $18.85 on Friday.
Separately, recently, 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.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: DODO data by YCharts