The 10-second takeaway
For the quarter ended March 31 (Q1), McDermott International beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share dropped significantly.
Margins dropped across the board.
McDermott International reported revenue of $807.5 million. The 11 analysts polled by S&P Capital IQ expected to see net sales of $748.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $727.7 million.
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 $0.09. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. GAAP EPS of $0.09 for Q1 were 65% lower than the prior-year quarter's $0.26 per share. (The prior-year quarter included $0.01 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 11.7%, 620 basis points worse than the prior-year quarter. Operating margin was 5.3%, 620 basis points worse than the prior-year quarter. Net margin was 2.5%, 610 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $757.7 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $3.11 billion. The average EPS estimate is $0.71.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,287 members out of 1,319 rating the stock outperform, and 32 members rating it underperform. Among 270 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 263 give McDermott International a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McDermott International is outperform, with an average price target of $14.06.
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