The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Oceaneering International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, and net margins expanded.
Oceaneering International reported revenue of $574.2 million. The 16 analysts polled by S&P Capital IQ predicted sales of $569.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $501.3 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 $0.54. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.52 per share. GAAP EPS of $0.54 for Q4 were 23% higher than the prior-year quarter's $0.44 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 22.8%, 60 basis points worse than the prior-year quarter. Operating margin was 14.4%, 30 basis points worse than the prior-year quarter. Net margin was 10.2%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $582 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $2.61 billion.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 739 members rating the stock outperform and 15 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give Oceaneering International a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oceaneering International is outperform, with an average price target of $50.65.
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Seth Jayson owned shares of the following at the time of publication: Oceaneering International. 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. Motley Fool newsletter services have recommended buying shares of Oceaneering International. 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.