The 10-second takeaway
For the quarter ended March 31 (Q1), Transocean missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins expanded, and net margins dropped.
Transocean booked revenue of $2.33 billion. The 20 analysts polled by S&P Capital IQ expected to see revenue of $2.39 billion on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $2.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.64. The 25 earnings estimates compiled by S&P Capital IQ averaged $0.34 per share. GAAP EPS of $0.12 for Q1 were 88% lower than the prior-year quarter's $0.97 per share. (The prior-year quarter included $0.55 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.5%, 290 basis points better than the prior-year quarter. Operating margin was 21.5%, 450 basis points better than the prior-year quarter. Net margin was 1.8%, 1,270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.55 billion. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $10.24 billion. The average EPS estimate is $2.92.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Transocean is outperform, with an average price target of $65.85.
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