The Worst Looks Over At Cal Dive (DVR)

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Offshore driller Cal Dive International Inc. (NYSE:DVR) reported third quarter earnings after markets closed yesterday. The company announced EPS of $0.44 on revenue of $278.7 million. Analysts had been expecting EPS of $0.36 and revenue of $258.35 million. Even better, the company’s backlog rose to a record $506 million on the heels of Hurricanes Gustav and Ike.

The bump in revenue and profit is the result of Cal Dive’s acquisitionof Horizon Offshore in late 2007. So that deal, at least, paid off forinvestors.

The share price is up nearly 9.5% in early trading, to$7.15. That’s still more than 50% lower than Cal Dive’s 52-week high.  With a 52-week low of $5.51, it looks like at least the worst has been priced into shares at current levels.

Paul Ausick
October 30, 2008