Transocean Beats Analyst Estimates on EPS

Transocean (NYSE: RIG  ) reported earnings on March 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Transocean missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.

Margins grew across the board.

Revenue details
Transocean reported revenue of $2.28 billion. The 24 analysts polled by S&P Capital IQ foresaw a top line of $2.37 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.91. The 29 earnings estimates compiled by S&P Capital IQ forecast $0.80 per share. Non-GAAP EPS of $0.91 for Q4 were 296% higher than the prior-year quarter's $0.23 per share. (The prior-year quarter included $0.08 per share in earnings from discontinued operations.) GAAP EPS were $1.26 for Q4 versus -$18.60 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.2%, 280 basis points better than the prior-year quarter. Operating margin was 23.4%, 620 basis points better than the prior-year quarter. Net margin was 19.6%, much better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.44 billion. On the bottom line, the average EPS estimate is $1.07.

Next year's average estimate for revenue is $10.09 billion. The average EPS estimate is $4.71.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Transocean is outperform, with an average price target of $59.24.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On March 03, 2013, at 2:56 AM, EmFetch267 wrote:

    Heading on up - When are people going to realize this company is massively undervalued??

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