The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Transocean beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP loss per share improved.
Margins contracted across the board.
Transocean chalked up revenue of $2.42 billion. The 24 analysts polled by S&P Capital IQ expected net sales of $2.34 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.16 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.23. The 30 earnings estimates compiled by S&P Capital IQ forecast $0.27 per share on the same basis. GAAP EPS were -$18.62 for Q4 against -$2.49 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -5.9%, 4,430 basis points worse than the prior-year quarter. Operating margin was -25.0%, 4,210 basis points worse than the prior-year quarter. Net margin was -252.6%, 21,560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.43 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $10.32 billion. The average EPS estimate is $2.97.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Transocean is outperform, with an average price target of $61.02.
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