The 10-second takeaway
For the quarter ended March 31 (Q1), Transocean missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Gross margins were steady, operating margins expanded, net margins grew.
Transocean notched revenue of $2.20 billion. The 22 analysts polled by S&P Capital IQ predicted a top line of $2.36 billion on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $2.34 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 $0.93. The 25 earnings estimates compiled by S&P Capital IQ predicted $1.01 per share. Non-GAAP EPS of $0.93 for Q1 were 45% higher than the prior-year quarter's $0.64 per share. GAAP EPS of $0.88 for Q1 were much higher than the prior-year quarter's $0.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.4%, much about the same as the prior-year quarter. Operating margin was 21.8%, 250 basis points better than the prior-year quarter. Net margin was 14.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.42 billion. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $9.88 billion. The average EPS estimate is $4.65.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Transocean is outperform, with an average price target of $60.17.
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