McDermott Earnings and Sales Plunge; Stock Does, Too

Houston-based McDermott International (NYSE: MDR  ) shares sank into a Marianas Trench-sized hole Monday, when after-hours traders, learning the extent of the company's Q2 2013 shortfall, bid the stock down nearly 15%.

Earnings at the offshore oilfield services company reversed completely, from last year's $0.22-per-share Q2 profit to a $0.63 quarterly loss this year. Revenues, at $647 million, tumbled 28% year over year.

Explaining the revenue decline and lack of profits, McDermott pointed to "the completion of several significant projects" in the Middle East and Asia-Pacific segments "that were active in the 2012 second quarter," but are so no longer. Higher revenues from the company's Atlantic segment weren't high enough to offset the declines elsewhere.

Project backlogs are also down to $5.1 billion, from $5.3 billion just a few months ago, suggesting further revenue declines could await investors going forward.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2580175, ~/Articles/ArticleHandler.aspx, 9/24/2016 5:13:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 19 hours ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:01 PM
MDR $4.59 Down -0.22 -4.57%
McDermott Internat… CAPS Rating: ***