NEW YORK (TheStreet) -- Shares of Diamond Offshore Drilling  (DO - Get Report)  are up 4.22% to $22.72 in pre-market trading this morning after the off-shore drilling company reported better-than-expected second quarter earnings and revenue before Monday's opening bell. 

Diamond Offshore Drilling posted adjusted earnings of 16 cents per share, surpassing analysts estimated 4 cents per share. Revenue fell more than 40% year-over-year to $388.75 million, but exceeded analysts estimated $374.1 million. 

Last year, the company reported earnings of 66 cents per share on revenue of $643.03 million. 

For the 2016 second quarter, Diamond Offshore Drilling posted a loss of $589,937. The company said its second quarter results were heavily impacted by impairment charges and related taxes of $612 million, due to the carrying value of eight semisubmersible rigs and associated inventory.

"Although the market continues to be challenged, our focus is on striking a balance between controlling costs and laying the foundation to ensure Diamond Offshore is well positioned for recovery," said Diamond Offshore Drilling CEO Marc Edwards in a statement.

Oil prices continue to fall today as increases in OPEC production and U.S. oil rig additions weight on the market, Reuters reports.

Crude oil (WTI) is up 1.11% to $41.60 and Brent crude is down 0.57% to $42.46 this morning. 

Separately, 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 has this to say about the recommendation:

We rate DIAMOND OFFSHRE DRILLING INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

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

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